Copper inches up to trade near record highs on supply constraints

Copper prices ticked up on Tuesday, hovering near record levels hit in the previous session after Chilean miner Antofagasta and a Chinese smelter agreed on a zero processing fee for 2026 copper concentrate, underscoring supply constraints.

The most active copper contract on Shanghai Futures Exchange was up 0.1% at 93,810 yuan ($13,325.28) per metric ton as of 0332 GMT.

The benchmark three-month copper on the London Futures Exchange was steady at $11,926.0 a ton.

China’s top copper smelters will cut production by over 10% in 2026, to counter overcapacity in the industry that has led to increasingly distorted copper concentrate processing fees, according to a Chinese market information provider last month.

Meanwhile, Chilean miner Antofagasta and a Chinese copper smelter have agreed to zero treatment and refining charges (TC/RCs) for 2026 after protracted negotiations.

Miners traditionally pay TC/RCs to smelters to cover the cost of converting copper concentrate into refined metal.

The charges fall when mine supply tightens and smelters accept poorer terms to secure concentrate.

Among other SHFE base metals, nickel extended gains for a fifth straight session, climbing to a more than two-month high, up 3.6% at 122,750 yuan a ton.

The London benchmark nickel also gained, up 0.5% to $15,350 a ton, its highest since Oct 30.

Nickel’s rally continued to find support after miner association in Indonesia, the biggest nickel producing country, said last week that the country will slash mine output in 2026.

In Shanghai, aluminium fell 0.4%, zinc lost 0.20%, lead was up 0.20%, and tin gained

 0.1%.

Among other LME metals, aluminium nudged 0.1% higher, zinc was down 0.1%, lead added 0.1% while tin gained 0.8%.