Copper Prices Surge on Zero TC/RC Agreement for 2026

Market Reaction to Antofagasta and Chinese Smelter Deal

Copper prices experienced a significant increase on Monday, December 22, 2025, following the announcement that Antofagasta, a major Chilean mining company, and a Chinese smelter had agreed on zero treatment and refining charges (TC/RC) for copper concentrate in 2026. This development has important implications for the global copper market, particularly in terms of supply chain dynamics and pricing mechanisms.

Futures Market Performance

The most active copper contract on the Shanghai Futures Exchange (SHFE) rose 1.36% to 93,980 yuan per ton. Similarly, the three-month copper contract on the London Metal Exchange (LME) saw a 0.33% increase to US$11,920.5 per ton. These price movements reflect the market's response to the new TC/RC agreement and its potential impact on the copper industry.

Industry Implications

The agreement between Antofagasta and the Chinese smelter marks a significant development in the copper market. The decision to set TC/RC at zero for 2026 could have far-reaching consequences for mining companies, smelters, and other industry stakeholders. It may influence production costs, profit margins, and overall market dynamics in the coming year.