A significant pricing shift has taken hold in the copper market. The recent move by Antofagasta to lock in zero processing fees for 2026 with a Chinese smelter marks a break from decades of industry convention, and it speaks volumes about where the leverage now sits.
For years, miners paid smelters a fee to convert copper concentrate into refined metal, known as treatment and refining charges. That equation has now flipped. With concentrate in short supply, smelters are agreeing to process material at no charge, simply to keep their operations running.
Delays, disruptions and underinvestment in new projects are all contributing to a market where smelters are struggling to source feedstock. As a result, many are preparing to cut output in 2026 to avoid deeper losses, a move that could reduce refined copper availability and add further support to prices.
Copper has been trading near all-time highs, and while part of that reflects broader macro themes, this upstream pressure is a more direct driver. Inventories remain low, and the market is increasingly sensitive to supply signals.
Jubilee Metals Group plc (LON:JLP) is a diversified metal recovery business with a world-class portfolio of projects in South Africa and Zambia. The Company’s expanding multi-project portfolio across South Africa and Zambia provides exposure to a broad commodity basket including Platinum Group Metals, chrome, lead, zinc, vanadium, copper and cobalt.
