Copper concentrates are gaining attention amidst the rising prices of gold and silver in the market. The surge in gold and silver prices in 2024 has led to increased interest in copper, zinc, and lead concentrates due to their higher levels of these precious metals, according to industry sources.

The London Bullion Market Association reported a significant increase in gold and silver prices, with gold reaching $2,333.50 per ounce and silver at $30.31 per ounce by May 24, marking a substantial rise from the beginning of the year. This surge in precious metal prices has triggered a heightened demand for copper concentrates, resulting in record-low treatment and refining charges (TC/RCs) as smelters seek to process these concentrates into refined metal.

Fastmarkets’ data indicated a notable decrease in the copper concentrate TC index, cif Asia Pacific, reaching negative values on May 17, the lowest level recorded since 2013. Smelters are increasingly turning to concentrates with higher gold and silver content to capitalize on the surging prices of these precious metals and alleviate the pressure on raw material supplies.

Copper smelters are actively seeking units with gold content as the value of gold outweighs that of copper. This trend is mirrored in the zinc and lead concentrate markets, where the demand for copper is escalating following a spike in copper prices. Suppliers are now imposing stricter payment terms for copper, zinc, and lead concentrates, with payment terms and the valuation of gold and silver playing a crucial role in price negotiations.

Market participants have noted a shift in payment terms, with traders requesting longer quotation periods and higher payables for gold due to its price escalation. Previously, gold content below 1 gram in copper concentrates was free of charge, but now, with the rising gold prices, payables are increasing even for smaller gold volumes.

The intensified competition for copper concentrates with high gold and silver content underscores the evolving dynamics in the base metals market. As the industry navigates through these shifting trends, the strategic utilization of metals price forecasts and analysis becomes instrumental in shaping base metals strategies to adapt to the changing market landscape.