China’s Grip on Copper Sets Scene for Make-or-Break Supply Talks

A pricing mechanism underpinning the global copper-processing industry faces a major stress test this week, with negotiations coming to a head at a time when geopolitical tensions are running high, metal is limited and China’s dominance has left smelters elsewhere struggling to survive.

Tensions have been building for years, fueled by a rapid expansion of metal-processing capacity that has outpaced mined production. That’s now prompting questions over the entire benchmarking structure, a longstanding process under which major miners strike a deal with China’s smelters, and the rest follow suit.