Chinese copper smelters are scaling back production ahead of key fee negotiations, citing rising ore costs and declining byproduct prices that are squeezing profits. Firms like Tongling Nonferrous Metals Group Co. and Daye Nonferrous Metals Group Holdings Co. have informed international concentrate suppliers of plans to reduce output this year and into 2027.
Some smelting plants have already begun maintenance, operating at minimal rates and reselling feedstock to the market. Up to 30% of Tongling’s primary smelting capacity is expected to be affected, according to sources familiar with the matter.
The cuts come as smelters face heavy losses due to higher ore costs and weaker byproduct prices. The reductions are likely to impact supply dynamics in the copper market as negotiations over treatment and refining charges approach.