China’s leading copper smelters have reached an agreement on processing charges for the first quarter of 2025, reflecting a continued shortage of copper concentrates. This decision was made during a meeting of the China Smelters Purchase Team held in Shanghai.
Key Details:
New Processing Charges:
The agreed processing treatment and refining charges (TC/RCs) are set 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.
Market Dynamics:
TC/RCs serve as a critical revenue source for smelters and indicate the availability of copper concentrates essential for refined copper production.
Typically, these charges decline when the supply of ore decreases and increase when more concentrates are available.
Comparison with Annual Benchmark:
Despite the quarterly reduction, the new rates are higher than the 2025 annual benchmark of $21.25 per ton and 2.125 cents per pound, which was recently established between Chilean miner Antofagasta and major Chinese smelters, including Jiangxi Copper.
Demand Insights:
Many attendees reported limited demand for spot copper cargoes, citing either adequate supply or scheduled equipment maintenance as reasons for reduced purchasing activity.
Sources have requested anonymity due to their lack of authorization to speak publicly about the discussions.