Antofagasta Proposes Index-Based Pricing for Copper Concentrate Contracts

Published: Jun 18, 2026 09:41

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Chile's Antofagasta has reportedly proposed using spot-market index pricing for copper concentrate contracts with Chinese smelters covering the second half of 2026 and the first half of 2027, moving away from the traditional fixed TC/RC benchmark system. Since the 1980s, annual treatment and refining charges (TC/RCs) have served as the industry's benchmark pricing mechanism for copper concentrate contracts. However, tightening concentrate supply, rapid smelter capacity growth and record-low spot TC/RC levels have increasingly challenged the traditional framework. Spot TC/RC assessments have recently fallen to a record low of around -US$147.3 per tonne. A broader shift toward index-linked pricing could significantly reshape future copper concentrate contract negotiations and pricing mechanisms.

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