Copper Reaches Record Highs; Smelters Post Zero Margins
London Metal Exchange copper surged to an all‑time high of $14,779 per ton, while the 2026 benchmark treatment and refining charge collapsed to $0, the lowest on record. Spot rates even turned negative, meaning smelters are effectively paying miners to process concentrate. The price spike is driven by China’s smelting dominance, Indonesia’s new capacity, and looming U.S. tariffs, reshaping control of the copper supply chain.
London Metal Exchange copper surged to an all‑time high of $14,779 per ton, while the 2026 benchmark treatment and refining charge collapsed to $0, the lowest on record. Spot rates even turned negative, meaning smelters are effectively paying miners to process concentrate. The price spike is driven by China’s smelting dominance, Indonesia’s new capacity, and looming U.S. tariffs, reshaping control of the copper supply chain.
Copper prices are likely to remain elevated in the short to medium term, but smelter margins will stay weak, limiting profitability for refining operators. Traders should monitor tariff developments and concentrate supply, as any easing of smelter costs could compress copper prices.