China’s Copper Smelters Set Lower Processing Charges for Q1 2025
China’s leading copper smelters have agreed on reduced price guidance for copper concentrate processing and refining charges (TC/RCs) for the first quarter of 2025, reflecting a continued shortage of copper concentrates. The new rates, agreed upon at a meeting of the China Smelters Purchase Team in Shanghai, are set at $25 per metric ton and 2.5 cents per pound, according to industry sources.
This represents a 28.6% decline from the fourth-quarter 2024 guidance of $35 per ton and 3.5 cents per pound. TC/RCs serve as a key revenue stream for smelters and act as an indicator of concentrate availability, decreasing when ore supply tightens and increasing when more material is accessible.
Despite the quarterly reduction, the new guidance remains above the 2025 annual benchmark of $21.25 per ton and 2.125 cents per pound, which was established earlier this month between Chilean miner Antofagasta and major Chinese smelters, including Jiangxi Copper.
Several meeting participants reported limited demand for spot copper cargoes, citing either adequate existing supply or planned equipment maintenance. The agreement underscores the challenges posed by constrained copper concentrate supply as smelters navigate fluctuating market conditions.
