The processing and refining fees (TC/RC) for imported copper concentrate in China continued to decline last week, and the Agence France-Presse (Agence) Refinery Index broke through the -100 USD/ton mark for the first time. Due to the sustained strength of the by-product sulfuric acid prices, which offset the profit pressure on the refineries, they were still able to accept lower processing fee levels. The weekly Agence Refinery Purchase TC Index dropped to a new historical low of -102.60 USD/ton and -10.26 cents/pound on May 15th, lower than -96 USD/ton and -9.60 cents/pound a week earlier. The trading price of the Agence Purchasing TC Index also weakened further to -147.80 USD/ton and -14.78 cents/pound, lower than the previous -146.20 USD/ton and -14.62 cents/pound. In the refinery market, a batch of 10,000 tons of clean copper concentrate was sold at -107 USD/ton, with shipment scheduled for July, with a pricing period of M+1/5; another 100,000 tons of goods scheduled for shipment in the second half of the year were sold at -103 USD/ton. More index transactions below the refinery purchase index levels were also reported in the market.
In the trading market, a batch of 10,000 tons of Mantoverde resources was sold at -150 USD/ton, with shipment scheduled for June, with a pricing period of M+1/4; another 10,000 tons of Sierra Gorda resources were sold at -155 USD/ton, with shipment scheduled for June, with a pricing period of M+2. Another 20,000 tons of Sierra Gorda resources were sold at -155 USD/ton and -110 USD/ton respectively, corresponding to shipment in the fourth quarter of 2026 and 2027, with a pricing period of M+4. A batch of 30,000 tons of Los Pelambres resources was sold at -182 USD/ton, with shipment scheduled for August, November and December, with a pricing period of M+3/4. Market participants expect that processing fees will continue to weaken further in the short term, but the decline may slow down. The firmness of sulfuric acid prices is expected to continue to offset some losses. According to market estimates, the current sulfuric acid prices can cover a processing fee loss of approximately 120 USD/ton. Domestic sulfuric acid prices are generally stable in most regions, but in Yunnan, prices have dropped due to the decline in the operating rate of a fertilizer enterprise. The background of processing fees reaching historical lows is the tightening of global mine supply, while the growth of refining demand is still faster than the growth of mine production. Some large mines' supply disruptions have not shown obvious short-term recovery signs, and some projects are only gradually increasing production.
