HK Stock Market Move | JIANGXI COPPER(00358) falls nearly 4% in the afternoon, copper concentrate processing fees drop to zero, copper smelting business gross profit may be under pressure.

JIANGXI COPPER (00358) fell nearly 4% in the afternoon, and as of the time of writing, it had dropped by 3.11% to 36.8 Hong Kong dollars, with a turnover of 5.58 Hong Kong dollars. On the news front, around December 19th, Chilean mining company Antofagasta reached an agreement with a leading domestic copper smelter to set the processing and refining charge benchmarks for copper concentrates in 2026 at $0 per ton and $0 per pound, lower than the $21.25 per ton and $2.125 per pound in 2025. Guosen stated that zero processing fees have strong cautionary significance, which may prompt relevant departments to introduce measures to counteract the internal competition in the copper smelting industry, and the industry's long-term outlook is expected to improve. Citigroup released a research report predicting that the gross profit of JIANGXI COPPER's copper smelting business next year will decrease year-on-year, and long-term smelting and refining business will also face downward pressure. However, due to expected increases in copper, gold, and sulfuric acid prices, the company's overall gross profit may rise next year. Citigroup raised its target price for Jiangxi Copper H shares from 27.9 Hong Kong dollars to 39.8 Hong Kong dollars and maintained a "buy" rating.