Pan Pacific Copper failed to conclude the copper concentrate purchase negotiation with Escondida of Chile and finished the talk. PPC planed to purchase total around 120,000 tonnes in net copper for 2006 and 2007. However, the firm cannot agree with the supplier for the treatment charge and refining charge and the firm will buy only 60,000 tonnes. They have a third party for arbitration on the purchase conditions. PPC and other copper smelters agreed with Freeport and other miners at US$ 95 per tonne of TC and 9.2 US cents per pound of RC in November. Japanese buyers sought such condition citing oversupply of copper concentrate while Escondida insisted the position. They finished the talk last week. Smelters and miners have twice negotiations of mid-year in June-July and year-end in November in every year. Japanese smelters purchase around 700,000 tonnes of copper concentrate a year from Escondida. The year-end negotiation represents 400,000 tonnes of purchase volume. PPC purchases around 120,000 tonnes of copper concentrate usually at year-end negotiation. However, the firm will buy 30,000 tonnes each for 2006 and 2007. Third party arbitrator with no interest for the buyer and supplier will decide the price and purchase conditions. PPC started the select the arbitrator and decides it in days. However, the procedure takes a couple of months. PPC will consume the inventory to fill the 30,000 tonnes of gap for the requirement for 2006 but the firm has to secure another 30,000 tonnes for 2007.
Japan Steel Scrap Composite Prices (Sangyo Press)08/21/2019
|25800YEN (-)||28600YEN (-)|
|240.31US$ (0.64)||266.39US$ (0.71)|
* Average of electric furnaces steel maker's purchasing price in Tokyo, Osaka and Nagoya (per ton)