Copper smelters warn of closures as crunch talks get underway

Key points:

• Smelter concerns: Smelters are facing increasing competition for ore supply due to new smelter investments. This could lead to lower processing fees and reduced profitability.
• Tough negotiations: The annual benchmark negotiations are expected to be challenging, with both sides expressing concerns about the market.
• Potential consequences: Smelter closures could reshape the global refined copper supply landscape and impact China's dominance over critical minerals.
• Benchmark negotiations: The benchmark is expected to be negotiated with Antofagasta Plc, with a focus on avoiding aggressive cuts to fees that could harm the industry.
• Supply-demand mismatch: The huge mismatch between concentrate supply and demand is primarily due to new smelting capacity and weak mine supply.
• Smelter adjustments: Smelters are likely to respond to the situation by reducing operating rates or even closing plants, depending on the outcome of the negotiations.

https://www.mining.com/web/copper-smelters-warn-of-closures-as-crunch-talks-get-underway/