Glencore Backs Shift Away from Annual TC/RC Benchmarks Amid Copper Market Volatility

Glencore CEO Gary Nagle has expressed support for shifting away from annual treatment and refining charges (TC/RC) benchmarks in favor of spot-based pricing mechanisms. This comes as the copper concentrates market continues to move towards a more volatile, spot-driven environment.

Nagle cited the collapse of the Merafe-Glencore chrome benchmark and the disappearance of the Newcastle coal benchmark as precedents for this shift. He noted that Glencore's position as both a producer and marketer leaves it well-placed to benefit from increased volatility in copper concentrate markets.

The company has already seen a move towards spot pricing emerge in the copper concentrates market, with index-linked deals increasing in value and depth by late July. In fact, Fastmarkets' weekly copper concentrates TC index recorded its largest single-week decline on record in mid-July, driven by a return of fixed-price transactions as sellers sought to lock in value amid rapidly falling TC/RCs.

Glencore is also planning a secondary listing on the Australian Securities Exchange (ASX) by October 2026. Nagle believes this will increase investor exposure to Glencore's copper business and support rapid index inclusion. The company aims to enter the ASX 200 index within the first two months of listing, requiring A$1.5 billion worth of stock held on the line.