Japanese copper smelters face tough negotiations with global miners over processing and refining tariffs because they will not be able to accept the very low terms agreed by Chinese smelters with suppliers, according to Tetsuya Tanaka, head of the Japan Mining Association.
Last month, some Chinese smelters agreed with Chilean miner Antofagasta on concentrate treatment and refining with zero charges. This compares to the annual 2025 tariffs of $21.25 per tonne and 2.125 cents per pound agreed between the Chilean company and Chinese smelters.
Japanese smelters, for their part, secured prices of $25 per tonne and 2.5 cents per pound for 2025 in the spring. According to Tanaka, they are now in mid-year talks to maintain higher margins than their Chinese counterparts. However, he said the talks are very difficult, as miners have offered prices even lower than the 2025 annual level. The squeeze on smelter margins is putting smelters outside China under severe pressure.
It is unclear whether the talks are for semi-annual contracts for the second half of the year or new annual agreements running from July to June next year.
The Japanese government is committed to supporting and strengthening domestic smelting of key minerals, although specific support measures for copper smelters have not yet been adopted. Japan also intends to replenish national reserves of critical minerals by increasing volumes or expanding target positions, but details are not being disclosed for national security reasons.
Hélène Tarin, Editor-in-Chief of the Asian Bureau, Rough&Polished
