Copper hits record $14,779 a ton as smelter fees plunge to about -$127
AI Market Summary
Copper hit record highs as mine supply constraints intensify while smelter economics collapse, with spot treatment charges turning deeply negative. Disruptions in major producing regions and a persistent concentrate shortage suggest structural tightness rather than a cyclical squeeze. Potential US tariffs are also distorting flows by pulling refined copper into the US, tightening availability elsewhere and reinforcing global premiums.
Impact level
● High
Affected assets
NCCO724COPPER2USD/USDT+1.13%
AI Insight · NCCO724COPPER2USD/USDTAI Insight
▲ Bullish
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Three-month copper on the London Metal Exchange hit a record $14,779 a ton on Tuesday, taking its year-to-date gain to nearly 18%. Over the same period, global smelting economics deteriorated sharply as spot treatment and refining charges fell to about negative $127 a ton, effectively forcing smelters to pay miners to process concentrate. China, which smelts roughly half of the world’s copper and has accounted for more than 90% of global smelting capacity growth since 2005, has continued to tighten its grip on processing.
