China’s top copper smelters have opted not to issue second-quarter guidance on copper concentrate treatment and refining charges (TC/RCs), citing ongoing challenges stemming from a sharp shortage of available concentrate, according to sources familiar with the matter.
The decision was made during a meeting of the China Smelters Purchase Team (CSPT) in Shanghai on Monday, where participants acknowledged that the current scarcity has upended the pricing landscape. Spot TC/RCs have remained in negative territory since December, rendering benchmark pricing effectively unusable.
TC/RCs—fees paid to smelters for converting copper concentrate into refined metal—typically provide a key indicator of supply-demand dynamics in the copper supply chain. When concentrate is scarce, smelters are forced to accept lower fees to secure feedstock.
The breakdown in pricing structure reflects the extent of the current squeeze, as smelters scramble for limited supplies while global concentrate production remains constrained.
The absence of quarterly guidance marks a rare move for the CSPT, further signaling just how disconnected the spot market has become from traditional pricing mechanisms.
