What is Antofagasta's new proposal regarding copper concentrate pricing, and how does it differ from the traditional system?

Antofagasta has proposed pricing its contractual sales of copper concentrates using spot-market indexes—specifically averages from third-party price reporting agencies—rather than relying on the decades-old benchmark system based on annual fixed-price negotiations. This marks the Chilean miner’s first attempt to introduce index-based pricing for mid-year contracts covering shipments in the second half of 2025 and first half of 2027, departing from the long-standing practice where a top miner and top smelter agree annually on fixed treatment and refining charges (TC/RCs) that serve as the global industry benchmark since the 1980s.

Why is Antofagasta shifting toward spot-market-linked pricing, and what market conditions are driving this change?

Antofagasta’s shift reflects growing commercial strain on the traditional TC/RC benchmark system, driven by several converging factors: China’s increasing reliance on imported copper ore, a severe shortage of concentrates that has caused spot-market treatment charges to collapse to record lows (reaching −$147.3 per ton), and intensifying competition among traders for scarce ore. With spot fees falling well below zero—meaning smelters now pay additional costs instead of receiving deductions—and fixed-price deals having settled at $0/ton for both mid-year and 2026 annual contracts, the profitability gap between fixed-price and spot-linked deals has widened significantly, prompting Antofagasta’s proposal.

Copper Miner Antofagasta Seeks to Link Ore Sales to Spot Market

Jun 17, 2026

Chilean miner Antofagasta proposes linking copper ore sales to spot-market indexes, challenging the decades-old benchmark system amid supply shortages and collapsing treatment charges. This shift signals potential commercial strain for Chinese smelters processing half the world's copper.

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