China imported nearly 3 million tonnes of copper ore and concentrate in April, setting a monthly record as smelters in the country struggle with tight feedstock supply and collapsing treatment charges. The surge in imports is expected to alleviate some pressure in the domestic market, where a growing number of smelters have been operating with negative margins due to the ore shortage.
The global copper processing industry has seen treatment charges — the fees paid by miners to smelters for converting ore into refined metal — fall below zero since December. On May 10, spot charges dropped further to –$57.50 per tonne, down from –$52.80 at the end of April. This means smelters are effectively paying to obtain ore, a reversal of the typical fee structure and a sign of extreme supply-demand imbalance.
Much of the global smelting capacity growth has been concentrated in China, which continues to produce record levels of refined copper despite official guidance to limit output and protect margins. The latest import figures signal that Chinese smelters have managed to lock in more concentrate through long-term contracts this year, reducing their reliance on spot market purchases.
According to Mysteel Global analyst Li Chengbin, additional supply from Indonesia has contributed to the rebound in imports. PT Freeport Indonesia resumed exports in March after a two-month suspension, helping to ease global supply constraints. At the same time, the shutdown of Glencore’s smelter in the Philippines — triggered by the sustained decline in treatment charges — has likely redirected concentrate toward Chinese buyers.
China’s copper demand has held up despite broader economic slowdowns, while geopolitical tensions have increased competition for supply. In particular, anticipated U.S. tariffs have prompted buyers to secure additional metal ahead of potential trade restrictions.
