Seeking Alpha

Freeport deal with China copper smelters may pressure BHP

  • Freeport McMoRan (FCX) has agreed to pay nearly a third more in annual processing charges to China's leading copper smelters, likely increasing the pressure on rival BHP to raise its own offer on the charges, Reuters reports.
  • China's top copper producer reportedly agreed with FCX to treatment and refining charges of $92/metric ton and $0.092/lb. for term copper concentrate shipments in 2014, setting the benchmark for the region, vs. $70/metric ton and $0.07/lb. charged by the smelters from Freeport this year.
  • BHP, whose opening offer of $80 and $0.08 offer to Chinese smelters last week now looks low, is meeting the smelters for a second round of talks this week.
  • ETFs: JJC, CPER, CUPM.
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Comments (3)
  • stockboy7
    , contributor
    Comments (3) | Send Message
     
    CVhina controling prices???? Steve
    18 Nov 2013, 01:06 PM Reply Like
  • stockboy7
    , contributor
    Comments (3) | Send Message
     
    Small investor ,find markets and the processing of information challenging
    18 Nov 2013, 01:06 PM Reply Like
  • Irene Goh
    , contributor
    Comment (1) | Send Message
     
    Perhaps there is an over supply situation that let the big buyers set the prices?
    18 Nov 2013, 09:01 PM Reply Like
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