China’s copper smelters win better-than-expected $0 processing fee from Antofagasta, sources say

Written by Louis Jackson, Amy LV and Hunamemie Lee

BEIJING/Singapore (Reuters) -Some Chinese screams agreed to treat copper from Chilean miners Antofagasta without any fees, which is a record in the industry, but the result was better than expected to passengers, which already suffers from losses.

Antofagasta agreed to set concentrated copper treatment fees at $ 0 for the metropolitan ton, 0 cents per pound, and four sources are aware of the matter on Friday.

The agreement reflects a decrease in copper concentration supplies for Sanads that increasingly produce metal in demand to transition to clean energy, including electric cars and power lines.

The drawings agreed with Antofagasta are a standard for industry and compared to the annual fees of 2025 at 21.25 dollars per ton and 2.125 cents per pound agreed between the Chilean and Chinese company.

It was described by one fuse and analysts who speak on the condition that his identity is not revealed as “better than expected.”

Antovagasta did not immediately respond to Reuters’s request for comment outside working hours.

Zero treatment fees is a victory for the mosque, given that the topical fees hover on the $ 43 negative sign – which means that the mosque must push copper miners to address their concentration. Usually, mineral miners should push to convert copper concentration into the metal.

The shortage of concentrated supply has intensified this year due to the capacity of the new fuse that comes online in China and the growth of supply is slower than expected.

Miner Ivanhoe Mines reduced the resulting guidelines after the copper mine in the Democratic Republic of the Congo was affected by seismic activity.

Mineral consultations sensitized metal intelligence linking the global deficit in the width of copper, which focuses on 1.1 million tons in 2025 and 2.6 million tons in 2026, respectively.

Contracts will deepen screaming losses in China, which is the largest sophisticated copper producer and consumer in the world, because the fees are a major source of revenue. Analysts, screams and merchants said in time to some mosque to reduce production.

However, the Chinese mosque, however, has not yet been less than production as revenues of secondary products such as gold, silver and sulfuric acid partially compensate for the loss of copper.

Refined copper production in China jumped by 8 % year on an annual basis to the highest level at 6.05 million tons from January to May, and official data showed, and the total MySteel consultations were expected in 2025 to climb by 12 % from the previous year to 13.29 million tons.

(Participated in coverage, Luis Jackson, Amy LV in Beijing and Hungami Lee in Singapore; Edited by Jacqueline, Wong and Sonali Paul)