Top copper smelters in China on Thursday refrained from setting guidance for copper concentrate processing fees for the first quarter of 2026, sources said, the fourth consecutive time the group has declined to do so as feedstock shortages push charges to record lows.

The decision was made at a quarterly meeting of the China Smelters Purchase Team (CSPT), a group of 16 leading smelters whose guidance is typically used as a benchmark in spot concentrate deals, two sources with knowledge of the discussion said.

Treatment and refining charges (TC/RCs), paid by miners to smelters to turn concentrate into refined copper, usually fall when concentrate supply tightens and rise when ore availability improves.

The decision came after Antofagasta and a Chinese copper smelter agreed on 2026 TC/RCs at $0 per metric ton and 0 cents per pound, the lowest ever reached in annual negotiations compared with charges of $21.25 a ton and 2.125 cents per lb for 2025.

Antofagasta has since reached agreement with all its Chinese clients for annual TC/RCs at zero, said a source with knowledge of the matter.

The CSPT refrained from setting the benchmark for the three previous quarters, too, as China’s copper smelters grappled with negative charges in the spot market, meaning smelters effectively have been paying miners to process their concentrate.

CSPT members agreed earlier last month to cut 2026 output by more than 10% to counter falling processing charges, after China’s Nonferrous Metals Industry Association said it “firmly opposed” zero and negative processing charges.

China has been studying ways to regulate its ever-expanding copper smelting capacity and to counter negative TC/RCs.

However, copper concentrate supply is expected to remain tight next year amid mine disruptions, including the suspension of Freeport’s flagship Grasberg mine in Indonesia, the world’s second-largest copper mine.
Source: Reuters