China's copper smelter demands 10% increase in copper processing and refining costs

According to reports, China's copper smelters have asked for copper processing and refining fees (TC/RC) to be pushed up by about 10%
from the previous month.
Traders said copper smelters no longer accepted the purchase of TC/RC for less than $90 a tonne and 9 cents per pound for the third quarter standard spot copper concentrate
.
They have purchased spot copper concentrate for fourth-quarter delivery at a TC/RC fee of about $92-93 per tonne or 9.
2-9.
3 cents per pound, rather than rushing to buy the copper concentrate for the season
.

Processing and refining costs are paid by copper concentrate sellers to Chinese copper smelters, which are then deducted
from the smelter's purchase price based on the London Metal Exchange (LME) metal price.
When supply increases or demand falls, fees follow as sellers compete for buyers
.
Higher fees can increase profits for copper smelters but cut miners' profits
.

As for the reasons for the rise in processing fees, the yuan posted its biggest weekly decline on record last week and hit a four-year low
.
The chief executive of a large copper smelter, who requested anonymity, said: "The depreciation of the renminbi has increased the cost of copper concentrate imports
.
"Another factor is lower copper prices
.
Chinese and international copper prices have hit near
six-year lows since last month.
The smelter's CEO said: "When metal prices are high, our margins are good and we can accept lower processing and refining costs
.
But at the moment we can't afford it
.
”

Industry insiders said that smelters' increased collection of processing fees will cut miners' profits to a certain extent, and may also inhibit copper mine production and supply
to a certain extent.
It is understood that the production of some smelters has also slowed, and China's refined copper production in July was 4.
5%
lower than in June.