Copper Smelters Face Severe Stress Amid Record Prices
The Indian Primary Copper Producers Association (IPCPA) has warned that copper smelters are facing severe financial pressure due to soaring copper prices. According to IPCPA, treatment and refining charges (TC/RCs), which smelters typically earn for processing copper concentrates supplied by miners, have fallen from positive levels of around $300-400 per tonne to about negative $1,300 per tonne.
The sharp decline in TC/RCs underscores the tightening availability of copper concentrates as mining output remains constrained while smelting capacity, particularly in China, continues to expand. The industry body said global mine output has been slightly lower due to operational challenges at three to four key mines globally.
Copper prices have jumped to unprecedented levels, with the London Metal Exchange (LME) price touching a record $14,737 per tonne in September 2026, up nearly 50% over the past year. The IPCPA attributed the price rally to expectations of US tariffs, tightening mine supply, and significant shifts in global inventories.
Vedanta Ltd said it is uniquely positioned to benefit from higher copper prices. Hundreds of thousands of tonnes of copper have been shipped to the US to take advantage of the premium between Comex and LME prices, leading to a concentration of copper stocks in the US.