A pricing mechanism underpinning the global copper-processing industry faces a major stress test this week, with negotiations coming to a head at a time when geopolitical tensions are running high, metal is limited and China¡¯s dominance has left smelters elsewhere struggling to survive.
Tensions have been building for years, fueled by a rapid expansion of metal-processing capacity that has outpaced mined production. That¡¯s now prompting questions over the entire benchmarking structure, a longstanding process under which major miners strike a deal with China¡¯s smelters, and the rest follow suit.
The crunch point may come during a major industry gathering in Shanghai over the coming days, which serves as a backdrop to annual discussions. Miners are expected to push for even tougher supply terms for 2026, after a year when annual treatment and refining charges ¡ª or TC/RCs ¡ª crashed to a record low.
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