Record low copper treatment charges supported by alternative smelter revenues

Copper smelter treatment charges (TCs), the charge levied by smelters to process copper concentrates, have hit record lows in recent weeks as a result of years of smelter overcapacity, particularly in China. As of 7th August, copper TCs were at -$173/tonne.  Concentrate supply has not grown quickly enough in recent years to make use of all the additional capacity among smelters, but strong byproduct prices, high premiums, and high copper prices have supported smelters despite dwindling TC proceeds.