China Demands Copper Supply Commitments from Anglo Teck Merger

China's antitrust regulator has set conditions for approving the proposed $54 billion merger between Anglo American and Teck, demanding that the combined company commit to supplying China with a steady flow of copper concentrate.

The move reflects China's struggle to feed its vast copper smelting industry, which refines up to 60% of the world's copper cathodes but faces its worst feedstock shortage in decades.

Chinese refined copper output is expected to grow at its slowest pace since at least 2000 this year as smelters compete for raw material and falling prices for byproduct sulphuric acid squeeze profitability, analysts said.

The State Administration for Market Regulation has asked Anglo Teck to commit to supplying China with copper concentrate, including volumes sold through traders, in exchange for approval of the merger.