Copper concentrate processing fees are expected to rise in 2017.

　　According to a report on the 1st, Juergen Schachler, Chairman of the Executive Board of Aurubis—the largest copper smelter in Europe—said that copper concentrate processing fees (TC/RCs) for 2017 are expected to rise from about $97 per ton this year to between $105 and $110 per ton.

　　Indonesia may allow copper concentrate exports after 2017.

　　An official from Indonesia’s Ministry of Industry said on the 2nd that Indonesia may allow exports of copper concentrate under certain conditions after 2017. According to current regulations, before 2017, copper concentrate producers were permitted to export only partially processed metal.

　　Peruvian Central Bank Governor: Peru's copper production is expected to increase in 2017.

　　Speaking at a forum on the 3rd, Julio Velarde, Governor of the Central Reserve Bank of Peru, said that the country's copper production in 2017 would reach 2.4 million tons, up from this year's 2.1 million tons. He also noted that, as metal prices stabilize, this will have a positive impact on Peru's current account in 2017.

　　IWCC: Global copper supply and demand are expected to be broadly balanced over the next two years.

　　The International Copper Committee (IWCC) issued a statement on the 4th, indicating that global copper demand in 2016 and 2017 is expected to roughly match supply. However, consumption in China—the world’s largest consumer—could turn out stronger than anticipated.

　　Freeport and Jiangxi Copper agreed to lower the 2017 copper concentrate TC/RCs by 5%.

　　According to sources, diversified mining company Freeport-McMoRan has reached an agreement with Jiangxi Copper, China's largest copper smelting company, to reduce the 2017 copper concentrate processing and refining fees (TC/RCs) by 5%.

　　World Bureau of Metal Statistics: From January to September 2016, the global copper market experienced a supply surplus of 124,000 tons.

　　Data released by the World Bureau of Metal Statistics on the 17th showed that from January to September 2016, the global copper market experienced a supply surplus of 124,000 tons, compared to a surplus of 3.02 million tons for the entire year of 2015. The global primary aluminum market faced a supply shortage of 806,000 tons, up from a shortage of 550,000 tons in 2015. The global lead market had a supply shortage of 15,000 tons, compared to a shortage of 14,000 tons for the entire year of 2015. The global zinc market recorded a supply surplus of 54,000 tons, whereas the entire year of 2015 saw a surplus of 100,000 tons. The global tin market faced a supply shortage of 26,600 tons. The global nickel market had a supply shortage of 76,400 tons, while the entire year of 2015 saw a supply surplus of 75,000 tons.

　　Chilean Central Bank: Copper export revenues in October totaled 2.16 billion U.S. dollars.

　　Data released by the Central Bank of Chile on the 7th showed that Chile's copper export revenue in October totaled $2.163 billion, down from $2.31 billion in September and the same period last year.

　　The Shanghai Futures Exchange adjusts the fee standards for trading contracts related to copper and other commodities.

　　On the 11th, the Shanghai Futures Exchange issued an announcement stating that, effective November 15, 2016, it would adjust the transaction fee standards for certain contracts, including copper: The intraday closing transaction fee for the copper 1701 and 1702 contracts will be adjusted to one ten-thousandth of the transaction amount; the intraday closing transaction fee for the zinc 1701 and 1702 contracts will be adjusted to 6 yuan per contract; and the intraday closing transaction fee for the nickel 1701 and 1705 contracts will be adjusted to 12 yuan per contract.

　　The silver market is expected to experience a supply shortage for the fourth consecutive year this year.

　　A report released on the 17th indicates that the silver market is expected to experience a supply shortage for the fourth consecutive year this year. According to the report, silver inflows into exchange-traded products are projected at 71.4 million ounces this year, while silver inventories at derivatives exchanges have increased by 61.9 million ounces since the beginning of the year, creating a gap in the physical silver market supply. The supply-demand gap this year is forecast to reach 185.5 million ounces—equivalent to nine weeks of global consumption.

　　Tongling Nonferrous Metals Invests 1.585 Billion Yuan in Lithium Battery Copper Foil Project

　　Recently, the 20,000-ton-per-year ultra-thin electronic copper foil project for high-precision energy storage—invested and constructed by Tongling Nonferrous Metals Group—was officially signed. It is reported that the nonferrous high-precision energy-storage ultra-thin electronic copper foil project has a total investment of 1.585 billion yuan and occupies an area of 170 mu. The project will be developed in two phases. Phase I is scheduled to commence construction in the fourth quarter of 2016 and is expected to begin production in June 2018, with an annual production capacity of 10,000 tons once operational. Phase II is planned to start construction after Phase I begins production, and upon reaching full capacity, the project is projected to generate annual sales revenue of 1.52 billion yuan.

　　Codelco lowers next year’s copper premium to China to USD 72 per ton.

　　On the 15th, Rodrigo Toro, Vice President of Chile's Codelco, stated that the company has lowered its copper premium for shipments to China next year by more than a quarter to $72 per ton—a level that will be the lowest since 2009.

　　ICSG Forecast: The global refined copper market will see a slight surplus in 2017.

　　The International Copper Study Group (ICSG) forecasts that refined copper production will grow by 2.2% in 2016 to 23.383 million tons, and next year’s growth rate will be 1.7%, reaching a production volume of 23.791 million tons. In 2016, global refined copper supply is expected to remain roughly balanced, while next year may see a slight surplus of around 163,000 tons. Global copper ore production grew by 4% in 2016 to approximately 19.884 million tons. In 2017, production is likely to remain stable at around 19.878 million tons.

　　Zambia’s imposition of import tariffs on copper concentrate will affect the global copper supply landscape.

　　According to reports from Lusaka on the 25th, industry insiders pointed out that Zambia’s plan to impose import tariffs on copper concentrate will impact the global copper supply chain and may compel its neighbor, the Democratic Republic of Congo, to export its surplus copper concentrate production to other regions. Earlier this month, Zambia announced that it would impose a 7.5% import tariff starting in 2017. This move is expected to affect refined copper supplies in the first half of the year. As the global market moves away from a state of oversupply, this measure should help support copper prices.

　　In October, Japan’s copper exports rose 41.2% year-on-year, while zinc exports fell 53.4% year-on-year.

　　Data released by Japan’s Ministry of Finance on the 29th showed that Japan’s exports of refined copper and cathode copper after customs clearance totaled 47,225,793 kilograms, an increase of 41.2% over the same period last year. Zinc exports, by contrast, declined sharply by 53.4% from the same period last year, falling to 4,844,391 kilograms.

　　Chile's copper production in October fell 11.1% year-on-year.

　　Data released by the Chilean government on the 29th showed that Chile’s copper production in October totaled 445,117 tons, a decrease of 11.1% from the same period last year, due to a production disruption at one processing plant caused by technical issues. Lower ore grades at key mining sites and ongoing maintenance work also contributed to the decline in October’s copper output.

　　Hubei Bans New Aluminum Electrolysis Plants but Strengthens Electrolytic Copper Production.

　　Recently, the General Office of the Hubei Provincial Government issued Implementation Opinions on Promoting Structural Adjustment, Facilitating Transformation, and Enhancing Efficiency in the Province’s Nonferrous Metals Industry. The document stipulates that all localities and departments must not, under any name or in any form, file applications for new electrolytic aluminum production capacity projects, nor may they handle related procedures such as land supply, energy assessments, environmental impact assessments, or provide additional credit support. For electrolytic aluminum technology upgrade projects that are truly necessary, it is imperative to strictly implement plans for replacing existing capacity either with equal or reduced amounts.

　　Rio Tinto: The copper market is expected to face a supply gap by 2020.

　　On December 6, global mining giant Rio Tinto Group stated that the copper market is expected to face a supply gap by 2020, coinciding with the start of operations at Rio Tinto’s Oyu Tolgoi copper-gold mine in Mongolia following its expansion.

　　Improved macroeconomic expectations could push copper prices above the 50,000 mark.

　　Wang Yu, chief analyst at My Color Network, believes that December 2016 will continue to be characterized by volatile upward trends, and the first half of 2017 will remain bullish. Prices are expected to break through the 50,000-yuan mark and reach their annual peak of 56,000 yuan per ton in May or June. In the second half of the year, prices will likely fluctuate downward, but the bottom levels will still be higher than those in 2015. The lowest point in 2017 is forecast to be 44,000 yuan per ton, with the central price hovering around 50,000 yuan per ton.

　　During the 13th Five-Year Plan period, the average annual growth rate of copper demand may exceed 2%.

　　During the 13th Five-Year Plan period, the incremental demand for copper was approximately 3.064 million tons per year. It is projected that China's apparent copper demand in 2016 will be around 15 million tons. Looking at the various sectors driving demand growth during the 13th Five-Year Plan, the average growth rate of copper demand is expected to be between 2% and 2.5%.

　　Jiangxi Copper’s revenue accounts for half of the industry; the copper market is expected to experience a major boom in 2019.

　　In the first three quarters of 2016, the 13 A-share listed companies in the copper industry achieved operating revenues of 286.913 billion yuan, up 15.56% year-on-year, and net profits of 1.687 billion yuan, up 9.40% year-on-year. In terms of operating revenue, Jiangxi Copper achieved revenues of 140.489 billion yuan, accounting for half of the total revenues of the 13 companies and firmly establishing itself as the leading player in China's copper industry. Several senior executives from copper companies believe that copper prices may rise slowly over the next two years, and the true turning point for the copper market could come in 2019, when copper-mining enterprises are expected to reap significant benefits.

　　From January to May, copper concentrate imports through the Dongdu Port increased by 13.61% year-on-year.

　　According to statistics, from January to May this year, the Dongdu Port imported 454,300 tons of copper concentrate, an increase of 13.61% compared to the same period last year. Despite the challenging global economic situation this year, the volume of copper concentrate imports at the Dongdu Port has not declined but has instead risen. Although prices have been volatile, the origin of the concentrate is concentrated and its quality remains stable.

　　China's refined copper exports surged 256% year-on-year in May, reaching a new high since May 2012.

　　Data released by China’s General Administration of Customs on Tuesday showed that China’s refined copper exports surged 256% year-on-year in May, reaching 84,959 tons—a new high since May 2012. It is understood that this increase was largely driven by exports from traders and smelters.

　　Anqing Copper Mine achieved a production output of 1,872 tons in the first quarter.

　　In the first quarter, Anqing Copper Mine accumulated copper production of 1,872 tons, iron concentrate of 94,500 tons, and heavy media of 22,100 tons—representing 27.23%, 28.06%, and 30.69% of the annual planned targets, respectively. The mine exceeded its quarterly production targets, achieving a strong start to the year’s production.

　　China Minmetals' 10,000-ton copper concentrate from BHP has arrived at Nanjing Port.

　　On March 20, the first shipment of 10,000 tons of copper concentrate—produced after the completion and commissioning of the Bongas Copper Mine in Peru, a project jointly invested in by China Minmetals, China National Investment Holding, and CITIC Group with a total investment of 10.5 billion U.S. dollars—arrived at the Huining Terminal of Nanjing Port.

　　One of the world’s largest copper mines resumes exports.

　　On the 15th, the Indonesian government granted Freeport-McMoRan a new export license, allowing the company to export from one of the world’s largest copper mines over the next six months, thereby ending a two-week production disruption caused by a dispute over payments for a new smelter.

　　In 2015, the global copper market experienced a supply surplus of 146,000 tons.

　　According to Dow Jones on February 17, data released on Wednesday by the World Bureau of Metal Statistics (WBMS) showed that in 2015 as a whole, the global copper market experienced a supply surplus of 146,000 tons, compared to a surplus of 116,000 tons in 2014.

　　China Becomes World’s First Copper Inventory Hub—Copper Prices Face Major Challenges

　　Customs data show that since August 27 last year, copper inventories at the Shanghai Futures Exchange have risen by more than 140,000 tons, reaching 2.77 million tons—a more than doubling of previous levels and the highest ever recorded. As the global center of copper inventories shifts eastward, China has replaced London as the world’s new hub for copper storage.

　　Copper Industry: Formulating National Industry Standards to Promote Energy Conservation and Emission Reduction in the Sector

　　A national mandatory industry standard, jointly drafted and formulated by nine organizations with Jiangxi Copper—the leading enterprise in the copper industry—as the primary drafter, was recently released. This marks the entry of China’s copper wire rod industry into a new era characterized by the use of standards to drive industrial development.

　　Jiangxi Province announced the discovery of a super-large tungsten-copper deposit, with tungsten reserves breaking the world record.

　　Chile's copper production in October fell 11.1% year-on-year.

　　Data released by the Chilean government on the 29th showed that Chile’s copper production in October totaled 445,117 tons, a decrease of 11.1% from the same period last year, due to a production disruption at one processing plant caused by technical issues. Lower ore grades at key mining sites and ongoing maintenance work also contributed to the decline in October’s copper output.

　　Peru Toromocho Copper Mine Project

　　Chinalco has reached a preliminary agreement with the Peruvian government to expand the Toromocho project, which is the Asian country’s largest copper mine project held overseas. Chinalco expects to inject 1.3 billion U.S. dollars into the Toromocho project over the next few months.