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Mumbai, 08 Nov (Commoditiescontrol):Copper concentrate processing fees are expected to fall to their lowest level in 15 years in 2025, driven by supply constraints from mine disruptions and rising smelting capacity, according to industry sources. As miners and smelters meet in Shanghai next week, negotiations for next year's treatment and refining charges (TC/RCs) are set to define the global benchmark, critical for smelter revenues.
A Reuters survey reveals TC/RC expectations range from the high teens to $50 per metric ton, with most estimates between the high $20s and mid $30s—far below the 2024 benchmark of $80 per ton. Shanghai Metals Market analysts project the copper concentrate deficit to widen to 822,000 tons in 2025 as China's smelting capacity grows, straining supplies further.
The Chinese spot market TC/RCs index currently stands at $10.45 per ton, and levels below $40 could prompt losses for many smelters, noted Benchmark Minerals Intelligence. Ongoing disruptions at smelters, including those owned by China Daye Non-Ferrous Metals Mining and Freeport Indonesia, may offer some bargaining power, but negotiations are likely to stretch into December.
To offset concentrate shortages, smelters are increasing scrap copper use, though Beijing’s recycling initiatives may only offer short-term relief as global scrap supply tightens.
The 2025 TC/RC benchmark will be pivotal for the industry, potentially shaping copper supply chains and reinforcing reliance on recycled materials amid ongoing concentrate shortages.
(Commoditiescontrol ब्यूरो: 09820130172)
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