LS MnM weighs output adjustments as copper concentrate shortage squeezes smelters

LS MnM is considering adjusting copper concentrate purchases and production at its Onsan Smelter in South Korea as record-low processing fees squeeze smelter profitability. The pressure reflects mine-supply constraints and smelting capacity that is expanding faster than production. The company may increase recycled-material use, improve recovery of precious metals and by-products, and expand its battery materials business while maintaining stable deliveries to key customers.

The International Copper Study Group projected global copper mine production growth of 1.3 percent this year, its third consecutive downward revision.

Global copper concentrate production fell 2 percent year-on-year from January through July, including declines of 8.8 percent in Chile and 29 percent in Indonesia.

Global copper smelting capacity rose by approximately 3.4 million tons between 2024 and 2025 to reach 29.1 million tons, while mine production increased by about 860,000 tons.

LS MnM’s Onsan Smelter has annual copper cathode production capacity of 680,000 tons.

Mitsubishi Materials plans to end copper concentrate processing at its Onahama smelter after March 2027, while Furukawa is reportedly planning to reduce refined copper production by about 3 percent year-on-year in the second half of fiscal 2026.

Published Oct 19, 2026 9:14 pm KST

Record-low treatment charges pressure margins despite surging copper prices

LS MnM's Onsan Smelter / Courtesy of LS MnM

LS MnM, Korea’s only dedicated copper smelter, is considering adjusting copper concentrate purchases and production to protect profitability as a global shortage of the raw material drives processing fees to record lows, the company said Monday.

The move comes as London Metal Exchange (LME) Week 2026 opens in London on Monday, bringing together miners, traders and smelters to discuss market conditions and commercial terms. Copper prices are approaching record highs, while spot treatment and refining charges (TC/RCs) for copper concentrate have plunged to record lows, squeezing smelters’ margins.

The imbalance reflects a structural mismatch between constrained mine supply and expanding smelting capacity.

In a March analysis, the International Energy Agency (IEA) cited declining ore grades, rising capital costs and lengthy mine development timelines as key constraints on copper concentrate supplies. New smelting capacity is growing faster than mine production, intensifying competition for raw materials. The IEA warned that low TC/RCs could persist over the medium term.

The International Copper Study Group (ICSG), in a forecast released Wednesday, projected global copper mine production growth of 1.3 percent this year, marking its third consecutive downward revision. It had forecast growth of 2.3 percent in October last year and 1.6 percent in April.

Global copper concentrate production fell 2 percent year-on-year in the January-July period, led by declines of 8.8 percent in Chile and 29 percent in Indonesia.

By contrast, global copper smelting capacity increased by approximately 3.4 million tons between 2024 and 2025, reaching 29.1 million tons, according to the ICSG. The increase was roughly four times the growth in mine production over the same period, which totaled about 860,000 tons.

Smelters elsewhere are responding. Mitsubishi Materials Corp. plans to end copper concentrate processing at its smelter in Onahama, Japan, after March 2027. Furukawa is reportedly planning to cut refined copper production by about 3 percent year-on-year in the second half of fiscal 2026. Major Chinese smelters have also discussed potential production cuts, according to Reuters.

LS MnM operates the Onsan Smelter, which has an annual copper cathode production capacity of 680,000 tons. It is considering flexible adjustments to concentrate intake based on purchase terms, market conditions and operational efficiency rather than maintaining production at unfavorable prices.

The company is also exploring ways to cushion the impact, including increasing recycled raw material use, improving the recovery of precious metals and by-products and diversifying earnings through its battery materials business.

Lower concentrate intake could reduce output of copper cathode and sulfuric acid. LS MnM said it would adjust sales volumes and supply plans while prioritizing stable deliveries to key long-term customers. Some export volumes could be adjusted depending on production levels and customer agreements.

“Rather than maintaining throughput by purchasing raw materials on unfavorable terms, we are carefully considering how to protect profitability through reasonable adjustments to raw material intake,” an LS MnM official said.

The official added that the company would balance profitability with its responsibilities to customers and suppliers.

“We hope LME Week 2026 will provide an opportunity to broaden understanding of supply-demand imbalances in the copper concentrate market and help miners and smelters explore mutually sustainable commercial terms,” the official said.

由于加工费处于历史低位，导致韩国温山冶炼厂的盈利能力受到挤压，LS MnM公司正考虑调整铜精矿的采购量和产量。这一压力反映出矿产供应受限以及冶炼产能扩张速度超过生产速度。该公司可能会增加再生材料的使用，提高贵金属和副产品的回收率，并拓展电池材料业务，同时保持对主要客户的稳定供货。

国际铜业研究小组预测今年全球铜矿产量增长率为1.3%，这是该小组连续第三次下调预测。

今年1月至7月，全球铜精矿产量同比下降2%，其中智利下降8.8%，印度尼西亚下降29%。

2024年至2025年间，全球铜冶炼产能增加了约340万吨，达到2910万吨，而矿山产量增加了约86万吨。

LS MnM 的 Onsan 冶炼厂年产阴极铜 68 万吨。

三菱材料计划在 2027 年 3 月之后停止其位于小名滨的冶炼厂的铜精矿加工，而据报道，古河计划在 2026 财年下半年将精炼铜产量同比减少约 3%。

发布于2026年10月19日晚上9:14（韩国标准时间）

尽管铜价飙升，但创纪录的低加工费仍令利润率承压。

LS MnM 的 Onsan 冶炼厂 / 图片由 LS MnM 提供

韩国唯一一家专门冶炼铜的LS MnM公司周一表示，由于全球原材料短缺导致加工费降至历史新低，该公司正在考虑调整铜精矿的采购和生产，以保障盈利能力。

此举正值伦敦金属交易所（LME）2026年交易周于周一在伦敦开幕之际，届时矿商、贸易商和冶炼厂将齐聚一堂，探讨市场状况和商业条款。铜价正逼近历史高位，而铜精矿的现货加工费和精炼费（TC/RC）已跌至历史低位，挤压了冶炼厂的利润空间。

这种不平衡反映了受限的矿产供应与不断扩大的冶炼能力之间的结构性不匹配。

国际能源署（IEA）在3月份的一份分析报告中指出，矿石品位下降、资本成本上升以及矿山开发周期过长是制约铜精矿供应的关键因素。新增冶炼产能的增长速度超过了矿山产量，加剧了原材料竞争。IEA警告称，低TC/RC（总成本/回收成本）的局面可能在中期内持续存在。

国际铜业研究小组（ICSG）周三发布的预测显示，今年全球铜矿产量预计增长1.3%，这是该机构连续第三次下调预测。去年10月，该机构曾预测产量增长2.3%，今年4月则预测为1.6%。

今年1月至7月，全球铜精矿产量同比下降2%，其中智利下降8.8%，印度尼西亚下降29%，降幅最大。

相比之下，根据国际铜冶炼集团（ICSG）的数据，2024年至2025年间，全球铜冶炼产能增加了约340万吨，达到2910万吨。这一增幅大约是同期矿产产量增幅的四倍，后者总计约86万吨。

其他地区的冶炼厂也在做出响应。三菱材料公司计划于2027年3月后停止其位于日本小名滨冶炼厂的铜精矿加工。据报道，古河铜业计划在2026财年下半年将精炼铜产量同比削减约3%。路透社报道称，中国主要冶炼厂也已讨论过潜在的减产方案。

LS MnM公司运营着恩山冶炼厂，该厂年产阴极铜68万吨。该公司正在考虑根据采购条款、市场状况和运营效率灵活调整精矿接收量，而不是在不利的价格下维持生产。

该公司还在探索各种方法来缓解冲击，包括增加再生原材料的使用、提高贵金属和副产品的回收率，以及通过其电池材料业务实现收入多元化。

精矿收购量下降可能导致阴极铜和硫酸产量减少。LS MnM表示，将调整销售量和供应计划，同时优先保障对主要长期客户的稳定供货。部分出口量可能会根据生产水平和客户协议进行调整。

LS MnM 的一位官员表示：“与其通过以不利的条件购买原材料来维持产量，我们正在认真考虑如何通过合理调整原材料的进货量来保护盈利能力。”

该官员补充说，公司将在盈利能力与对客户和供应商的责任之间取得平衡。

“我们希望 2026 年伦敦金属交易所周能够提供一个机会，加深对铜精矿市场供需失衡的理解，并帮助矿商和冶炼厂探索互惠互利的商业条款，”该官员表示。