Japanese copper smelters still in talks for 2026 charges with miners

Mitsubishi Materials

22/01/2026 09:21

By Yuka Obayashi

TOKYO, Jan 22 (Reuters) - Japanese copper smelters are still negotiating 2026 treatment and refining charges (TC/RCs) with global miners and are seeking terms different from those set by China, the head of the Japan Mining Industry Association (JMIA) said on Thursday.

TC/RCs, fees paid by miners to turn concentrate into refined metal, have come under pressure as global smelting capacity, led by China, expands faster than mined supply, squeezing smelters' margins.

Chilean miner Antofagasta ANTO.L and a Chinese copper smelter have agreed 2026 TC/RCs of $0 per metric ton and 0 cents per pound, two sources said in December, highlighting the tough market.

"I believe Japanese smelters are aiming for contracts at a different level than China's, but negotiations are apparently difficult," JMIA Chairman Tetsuya Tanaka told a news conference.

Tanaka said Japanese smelters were stressing their value proposition in talks, including traceability and lower  environmental risks, while some miners recognise China could take a tougher stance in pricing as its market dominance grows.

However, he said progress remained unclear and he could not be optimistic.

Separately, Pan Pacific Copper, Japan's largest supplier of the refined metal, offered domestic customers a record premium of $330 per metric ton for 2026, a source said.

Tanaka said even high premiums above $300 per ton cannot offset falling TC/RCs.

For 2025, Japanese smelters secured TC/RCs of $25 a ton and 2.5 cents per pound, higher than the $21.25 a ton and 2.125 cents per pound agreed between a Chilean miner and a Chinese smelter, industry sources said.

 (Reporting by Yuka Obayashi
Editing by Mark Potter)

 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))