Chinese Copper Concentrate: Tender Results Show A Decline in Processing Fees Due To A Decrease in Transaction Volume

The copper concentrate processing and refining fees (TC/RCs) of Chinese smelters continued to decline last week, affected by the lower result of a large-scale mine tender. The Agence France-Presse weekly purchasing index for smelters dropped from -45.20 US dollars/ton and -4.52 cents/pound on January 9th to -46.30 US dollars/ton and -4.63 cents/pound on January 16th, while the trader purchasing index fell from -101.60 US dollars/ton and -10.16 cents/pound to -102.70 US dollars/ton and -10.27 cents/pound. The Agence France-Presse weekly average copper concentrate TC/RC index dropped from -73.40 US dollars/ton and -7.34 cents/pound on January 9th to -74.50 US dollars/ton and -7.45 cents/pound on January 16th. A large mining company concluded the smelter purchasing tender last week, with the contracted processing fee/refining fee being -49 US dollars/ton and -4.90 cents/pound, with a pricing period of M+3 and shipment time of March-April. This result was lower than the previous round of tender in November last year, when the contracted price was -43 US dollars/ton and -4.30 cents/pound. Two batches of clean copper concentrate are said to have been sold at processing fees of -44 US dollars/ton and -46 US dollars/ton, with a shipment period of February-March. Some traders expect that with the recent decline in the tender price, the spot processing fee that can be negotiated may drop to close to -50 US dollars/ton in the short term. A tender for Meteo concentrate was sold at a processing fee of -110 US dollars/ton, purchased by traders, with a shipment time of 2026. The mining dynamics company Ivanhoe Mines of Canada stated that its flagship projects in the Democratic Republic of Congo - Kamoa-Kakula copper mine and Kipushi zinc mine have achieved the full-year production targets for 2025 and confirmed that with the advancement of new processing capacity, the expected production in 2026 will further increase.31 million tons. Rio Tinto and Glencore's preliminary merger discussions reflect the core position of copper in global mining strategic decisions, although the impact on the spot market in the near future may be limited.