Record gold prices keep China's copper smelters buoyant despite...

Record gold prices keep China's copper smelters buoyant despite losses
https://www.goldseiten.de/artikel/655718--Rekordgoldpreise-h…03.05.2025 |Editorial Staff
The Chinese copper smelting industry is facing significant challenges as more and more furnaces compete for the limited supply of concentrate, reports Reuters.Despite a 25% increase in smelting capacity since 2021 and an expected 10% increase this year, the industry is struggling with negative concentrate treatment and refining rates (TC/RC).
These rates have fallen to a record low, with the index at -$34.71 per ton in April, indicating widespread financial strain across the industry.Negative TC/RC means smelters must pay miners or traders to process the concentrate into metal, i.e., they pay their customers, explains Reuters.Despite these unfavorable conditions, smelters are unlikely to significantly reduce production, partly due to high prices for by-products such as gold and sulfur.Record gold prices are helping to offset losses from negative TC/RCs.
Smaller, older smelters that lack modern technologies to extract valuable by-products could face difficulties and close or reduce production.Looking ahead, analysts at Mysteel forecast refined copper production to rise 10% this year, supported by the massive expansion of smelting capacity in China, which is expected to reach 12.78 million tons—an 8% increase year-on-year.
Official data show that Chinese refined copper production fell only slightly by 0.5% year-on-year in the first quarter, a sign of resilience despite continued pressure from negative TC/RCs and tight concentrate supplies.