Several of China’s major copper smelters convened in Beijing on Tuesday with
government officials ahead of mid-year negotiations with global miners over
processing fees for the July 2026 cycle. The meeting included representatives
from the state-backed China Nonferrous Metals Industry Association (CNIA) and
focused on output planning and fee-setting strategies.
Processing fees, also known as treatment and refining charges, have reached
record lows due to a global concentrate shortage. Last year, Chinese smelters
agreed with Chilean miner Antofagasta to set 2026 calendar-year fees at zero,
mirroring mid-2025 levels. Spot treatment charges for imported concentrate
remain negative, at minus $102.60 per metric ton on May 15, up from minus $96
the previous week.
Despite an agreement in November 2025 to cut concentrate-fed supply by more than
10% to address overcapacity, first-quarter refined copper output rose 9.3%, and
guidance from leading smelters suggests limited production restraint for the
remainder of the year. The National Development and Reform Commission (NDRC)
signaled in March that capacity management would continue in copper smelting and
alumina, though no detailed measures were disclosed.
Tuesday’s discussions reportedly covered first-quarter output and plans for the
second quarter, signaling coordination between industry players and regulators
ahead of critical fee negotiations.
