China’s copper smelters to discuss production cut as fees slump

From Mining.com

The fees that companies receive to turn concentrate into refined metal, so-called treatment charges, have slumped to a record low in data going back to 2013. They dropped to single digits in 2010 after the global financial crisis forced miners to curtail operations, according to Wood Mackenzie Ltd.

Smelters compete to treat concentrate but overseas mine disruptions are curbing supply, forcing them to drop their fees. The situation is made worse by overcapacity in China, home to the world’s largest processing industry, where smelters have expanded relentlessly to meet demand from economic growth and the energy transition.