Japanese copper smelters are negotiating 2026 treatment and refining charges (TC/RCs) with global miners, seeking terms distinct from the expected low China-set benchmarks, according to the head of the Japan Mining Industry Association (JMIA) on Thursday. TC/RCs refer to fees paid by miners to smelters for converting copper concentrate into refined metal, a core revenue source for smelters. These charges typically decline amid concentrate supply tightness and rise when ore availability increases.

Currently, global smelting capacity is expanding faster than mined supply—led by China—creating persistent concentrate tightness that has squeezed smelters’ margins. For 2025 annual TC/RCs, industry sources noted that a Chilean miner and Chinese smelter agreed to $21.25 per ton and 2.125 cents per pound, while Japanese smelters secured higher terms at $25 per ton and 2.5 cents per pound.

JMIA chairman Tetsuya Tanaka stated that Japanese smelters aim to establish a distinct market for 2026 by negotiating individual contracts instead of following the global benchmark. He added that the fina...