China’s Copper Smelters Lower Processing Fees Amid Ongoing Ore Shortage

China's leading copper smelters have agreed to reduce processing charges for copper concentrate in the first quarter of 2025 due to a continued shortage of copper ore, according to industry sources. During a meeting of the China Smelters Purchase Team in Shanghai, smelters set new guidance for treatment and refining charges (TC/RCs) at $25 per metric ton and 2.5 cents per pound. This marks a 28.6% decrease from the fourth-quarter guidance of $35 per ton and 3.5 cents per pound.

TC/RCs are a vital revenue stream for copper smelters and serve as an indicator of copper concentrate availability. Lower charges typically signal tighter ore supply, while higher fees suggest greater availability. Despite the quarterly decline, the new guidance remains above the recently established 2025 annual benchmark of $21.25 per ton and 2.125 cents per pound, agreed upon between Chilean miner Antofagasta and major Chinese smelters, including Jiangxi Copper.

Industry insiders noted that many smelters are not actively seeking spot copper cargoes due to either having adequate inventory or scheduled maintenance shutdowns. The continued ore supply constraints have contributed to the reduction in processing fees, highlighting ongoing challenges in the global copper supply chain.