Copper Climbs to Record Peak as Smelting Margins Erode

Copper hit an all-time high on the LME amid a tight supply chain, but smelters are losing money turning concentrate into metal as TC/RC charges collapse to zero and spot rates turn negative. China remains the dominant processor, Indonesia expands capacity, and mine-supply constraints in Chile, Congo, and other regions, along with tariff-driven trade shifts, are reshaping who captures value in the copper market—pointing to a multi-year squeeze driven by ore control rather than refining margins.