Copper Fees Plunge Close to Zero in Test For China’s Smelters
- Treatment charges sink to single digits as market tightens
- Chinese producers will meet in Beijing to discuss response
A copper smelter in Tongling, Anhui province, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China’s copper smelters are at a critical juncture after fees for processing imported ore collapsed to single figures, raising focus on whether they will keep resisting pressure for production cuts.
A steep decline in so-called treatment and refining charges has accelerated in March, with copper concentrate trading at levels more than 90% lower in the spot market than six months ago. That means squeezed margins or losses for smelters, and points to a sharp tightening of the market after a series of unexpected mine disruptions.