Chinese smelter reportedly agrees to record low copper concentrate TC/RCs

A Chinese smelter and Chilean miner Antofagasta have reportedly agreed to record low, $0/t, annual copper concentrate treatment and refining charges. This level is well below last year’s already record low $21.25/t deal agreed between Chinese smelters and Antofagasta, but in line with mid-year discussions which were also agreed at $0/t.

The agreement comes at a time of acute tightness in the copper concentrate market. Smelter expansions have far outstripped concentrate production growth creating a significant imbalance in the market.

Spot copper concentrate TCs have been well below $0/t for most of 2025.

Copper concentrate TC/RCs are often described as the fees smelters charge miners for processing copper concentrates into useable material. In reality, the arrangement is more nuanced. The TC/RCs essentially act as a discount on the LME copper price and historically smelters would make a significant amount of their revenue via these discounts.

However, smelters also make profit selling by-products like acid, gold and even extra copper produced. Beyond this, smelters sell their copper at a premium to the LME price and can also make profit from this. For 2026, those premiums are at record levels, with many well into the $300/t.This all helps smelters’ margins.

One miner source noted to Benchmark that it will be easier for smelters to stomach the low TCs due to the premiums in excess of $300/t.

The discussions between Antofagasta and Chinese smelters are seen essentially as the “benchmark” copper concentrate TC/RC discussions. As such, the global market tends to follow the agreement between those parties – often it is signed into multi-year contracts, in some way.

Last year, the low annual TC/RCs agreed between Chinese smelters and Antofagasta were not as broadly followed as in most previous years. Japanese smelters managed to agree slightly higher TC/RCs, creating some dispute over what the benchmark level actually was.

“I doubt the Japanese smelters will follow,” a second miner source told Benchmark, nothing this could open the door for disputes over the benchmark like we saw last year.

If the industry broadly accepts the level agreed between Antofagasta and Chinese smelters it will be significant. Many smelters will lose a significant amount of a key revenue stream and be heavily impacted economically.

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