Japanese smelters settle 2025 term contract copper concs TC at $25/mt

Three major Japanese smelters – Sumitomo Metal Mining, Pan Pacific Copper and Mitsubishi Materials Copper – reportedly settled several term contracts with producers for 2025 loading shipments at $25/mt and at 2.5 cents/lb for copper concentrate TC/RCs, during the Feb. 5 week, without window dressing and side term changes, company sources told S&P Global Commodity Insights.

Japan is the second-largest copper concs buyer in the world and imported 5.2 million mt of copper concs in 2024, according to the Japan Ministry of Finance.

However, some term contracts were still pending for final agreement, while several producers said the negotiation is still dragging due to different numbers requested by Japanese smelters and Chinese settlement levels.

"We don't recognize two numbers and insist on $21.25/mt," a producer said.

Chinese smelters settled their 2025 term contracts with Antofagasta (opens in a new tab)on Dec. 6 at $21.25/mt and 2.125 cents/lb, and some term contracts were settled between Japanese smelters and producers (opens in a new tab)at $25/mt and 2.5 cents/lb since December 2024.

Ex-China smelters generally follow the number settled by Chinese smelters and producers for annual contracts.

"But considering the current market status, we are not able to do that. Low TC/RCs are killing smelters, especially out of China," a Japan-based source said.

Another Japan-based source said, "despite some term contracts settled at $25/mt and 2.5 cents/lb, it is still not enough to cover our production cost."

Both producers and smelters have addressed difficulties in term contract negotiation for 2025 due to extremely low TC/RCs, sustainability of the copper smelting industry and different numbers requested by different smelters.

"It is the cost of diversification," a source commented on the different settlement numbers between China and Japan markets so far.