Copper: just some infos

OANDA:XCUUSD   CFDs on Copper (US$ / lb)
Hi Guys,

Interesting time for copper!

Chinese smelters and global miners meet every November to negotiate the annual benchmark for the following year’s TC / RCs .

Miners pay treatment and refining charges ( TC / RCs ) to smelters to process concentrate into refined metal. When supply is scarce, refiners have to charge less to attract what they need.

This comes when an unofficial Chinese ban on Australian copper concentrate imports could hurt Chinese smelters in their negotiations with miners on benchmark treatment charges for 2021, traders and analysts said.

While Australia is not a big supplier of copper concentrate to China, the row comes as supplies from South America have been disrupted by the coronavirus epidemic which looks set to erode the bargaining power of smelters in China to buy for next year.

On Monday the Candelaria Union will decide how to carry on the strike commenced at the beginning of October that disrupted supply.

From a technical point of view to note that despite the divergence between price and sentiment, the commodity keeps pushing towards the 3.2 level. Will it drop from this level or will it continue higher?

Please share your view in the comments below.

Thank you for your support and for sharing your ideas.


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