China firmly opposes zero or negative treatment and refining charges (TC/RCs) for copper smelting, urging the global industry to address the structural contradiction that has roiled the industrial metal market. This year, TC/RCs—fees smelters earn for converting copper concentrate into refined metal—have plummeted to record lows due to raw material scarcity. The rapid growth of China’s smelting capacity (the world’s largest) has collided with widespread global mine outages, leading to an unprecedented scenario. A NEGATIVE TC/RC EFFECTIVELY MEANS SMELTERS PAY TO PROCESS CONCENTRATE, A HIGHLY UNUSUAL SITUATION THAT CHALLENGES THE INDUSTRY’S LONG-STANDING PRICING BENCHMARKS, with spot charges dropping as low as minus $60 per ton.

Chen Xuesen, vice president of the China Nonferrous Metals Industry Association (CNIA), stated at a Shanghai industry conference that such practices severely undermine the interests of the global copper smelting industry, including China. CNIA FIRMLY OPPOSES ANY ZERO OR NEGATIVE TC/RCs IN COPPER CONCENTRATE PROCESSING, and urges the global copper industry to confront th...