China expands copper processing capacity amid global ore shortage — Bloomberg

Bloomberg reports that China's copper output has reached a record high this year, despite risks from global trade uncertainty that are putting pressure on the demand outlook.

The relentless expansion of copper processing capacity in China has led to intense competition among smelting companies for the ore needed to produce the vital industrial metal.

As a result, copper treatment charges, typically a major source of revenue for processors, have fallen below zero. Chilean miner Antofagasta Plc has even proposed negative fees for contracted supplies to copper smelters in the second half of the year, the agency noted.

The crisis is forcing production cuts, with Glencore having already closed one of its plants. Analysts warn that even the largest producers may have to reduce output simply because they cannot secure enough raw materials. This situation is increasing financial pressure on smelters around the world.