Global smelters face copper ore shortage in market — Reuters

Global copper smelters are so desperate for raw materials that they're now paying mining companies to convert their concentrates into refined metal, Reuters notes.

So-called copper treatment charges (TCs), traditionally a core revenue source for these facilities, have turned negative since the start of the year, the news agency reports.

Low processing fees fuel the narrative of insufficient copper supply, but the current situation also due to excessive demand from the large number of new smelters entering the market.

Refining operators have several alternative revenue streams, including gold and silver sales. Plants also produce sulfuric acid, the price of which has surged in China due to rising demand from phosphate fertilizer manufacturers. However, copper should remain the core income source for smelters, a reality that is not currently reflected in market conditions, as Reuters explains.