Global copper smelters face losses as China ramps up processing capacity — Reuters

Global supply chains are already feeling the effects of China's restrictions on rare earth metal exports. But an even bigger threat is looming, involving critical minerals. The global metallurgical industry is facing a crisis as China's rapid buildup of processing capacity undermines profitability across the sector, according to Reuters.

Copper smelters in Namibia and the Philippines have already suspended operations due to financial losses. Other key players, including Glencore’s Mount Isa facility in Australia, are also on the verge of shutting down, the news agency reports.

Chinese smelters have signed a zero-treatment-charge agreement with Chile’s Antofagasta for copper concentrate processing. By contrast, in the spot market, smelters are being forced to pay miners for raw material, Reuters notes.

Meanwhile, China continues to strengthen its position in the metallurgical industry by expanding its smelting capacity. Even restrictive measures introduced by Beijing have failed to curb this expansion, as companies bypass barriers by relocating production to other countries, the organization says.