China's Copper Foil Fees Soar on Tight Supply-Demand Balance

China's copper foil processing fees have surged due to accelerating demand and lagging supply. The market has been in a tight balance since the third quarter, with lithium-ion battery copper foil and electronic-circuit copper foil experiencing simultaneous increases in output, orders, and processing fees.

The drivers behind these fee increases differ across product segments. For lithium-ion battery copper foil, slowing capacity expansion and an approaching seasonal demand peak are providing support. In contrast, supply constraints for high-end electronic-circuit copper foils are more pronounced, with AI-related demand creating a structural supply-demand gap.

Rising copper prices have also added upward pressure on processing fees by increasing manufacturers' financing and operating costs. Producers are incentivized to pass these additional costs through to processing fees due to long payment terms with downstream customers.