Key Metrics
11.2
Heat Index-
Impact LevelMedium
-
Scope LevelNational
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Last Update2025-12-01
Key Impacts
Positive Impacts (8)
Negative Impacts (2)
Event Overview
A reduction in copper mine production capacity aims to balance supply and demand, support the Benchmark system, and enhance direct collaboration with mines. The move also seeks to counteract unreasonable index pricing, addressing the mismatch between smelting capacity and ore availability.
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CSPT to Reduce Copper Mine Production Capacity by Over 10% in 2026
The China Copper Raw Materials Joint Negotiation Group (CSPT) has agreed to reduce mine copper production capacity by over 10% in 2026. The reduction aims to improve the supply and demand fundamentals of copper concentrate, maintain the Benchmark system, and strengthen direct cooperation with mines. CSPT also plans to resist unreasonable index pricing by traders. The main cause of the TC (treatment charge) deviating from reasonable levels is the mismatch between smelting capacity and copper ore. Reducing smelting capacity aims to bring TC back to a reasonable level without affecting the conversion of copper ore to refined copper. However, concentrated production cuts could impact short-term supply. Additionally, the high probability of a Fed rate cut in December (86%) may further boost copper prices, potentially replicating the price surge seen on March 13, 2024.