Guosen Securities: Benchmark processing fee for copper concentrate reduced to zero, prompting the smelting industry to "fight against internal consumption."

Guosen Securities released a research report stating that around December 19th, Chilean mining company Antofagasta and a leading domestic copper smelter reached an agreement to set the benchmark processing and refining charges for copper concentrates in 2026 at 0 US dollars per ton and 0 US cents per pound, lower than 21.25 US dollars per ton and 2.125 US cents per pound in 2025. The treatment and refining charges for long orders have dropped to zero, not only due to the supply and demand imbalance in the copper concentrate-smelting market, but also because the profit from by-products and recovery rates are at historically high levels. Chinese copper smelters have leading technology levels and cost control globally, and the smooth absorption of by-products has highlighted their competitive advantage in the low period of copper smelting; zero processing fees will prompt the implementation of capacity adjustment measures, and the industry landscape is expected to improve.