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Copper smelters are currently facing significant challenges due to shrinking margins driven by a combination of declining ore grades, increased production costs, and tight supply of raw materials. This situation is particularly acute in China, where many smelters are planning to cut output in response to these pressures.
The outlook for copper smelters is challenging, with expectations of continued tightness in the supply of copper concentrates over the next few years. The combination of low TC/RCs and high production costs raises significant concerns about the sustainability of many smelting operations. Without improvements in market conditions or a substantial increase in concentrate supply, the industry may face a critical period ahead, particularly for those reliant on spot market purchases.
