Chinese copper smelters meet with government officials in Beijing

Antofagasta

19/05/2026 08:09

BEIJING, May 19 (Reuters) - Several major Chinese copper smelters gathered in Beijing on Tuesday for discussions with government officials, sources said, as the industry prepares for mid-year negotiations with global miners over processing fees for the year starting in July.

The meeting was attended by several major smelters and included officials from the state-backed China Nonferrous Metals Industry Association, according to two sources with knowledge of the matter who spoke on the condition of anonymity.

Processing fees, also known as treatment and refining charges, are paid by miners to smelters to turn concentrate into refined metal and have hit record lows amid a growing shortage of concentrate worldwide.

The industry association and China's state planner, the National Development and Reform Commission, did not immediately respond to requests for comment.

Smelters are preparing for another round of contract negotiations with Chilean copper miner Antofagasta ANTO.L. Fees agreed with Antofagasta are a benchmark for processing agreements between Chinese smelters and other miners.

The China Nonferrous Metals Industry Association last year called for the industry to resist negative fees. Shortly afterwards, Antofagasta agreed with Chinese copper smelters to set processing fees for the 2026 calendar year at a record low of zero, matching the mid-year 2025 fees.

Spot treatment charges, though, for imported copper concentrate in China have been negative for more than 16 months, at minus $102.60 a metric ton on May 15 versus minus $96 a ton the previous week, according to data provider Argus Media.

China's major copper smelters agreed last November to cut concentrate-fed supply by more than 10% this year to counter overcapacity in the sector and the low fees. But refined copper output in the first quarter climbed by 9.3% and guidance from some leading smelters shows little sign of a production trim.

The NDRC said in March that capacity would be managed in copper smelting and alumina output, but gave no details.

Tuesday's meeting included a discussion about output in the first quarter and plans for the second, said one of the sources.

 (Reporting by Reuters staff; Editing by Tom Hogue)