Value-added segment to help copper smelters offset margin pressure

Global smelters are negotiating conversion charges which indicate a decline from 2017 levels

A sharp decline in income from the copper business due to lower treatment and refining charges (Tc/Rc) is a concern for India’s primary base metals producers including Hindalco Industries and Vedanta, but their focus on value-added copper products and firm aluminium prices should help offset any potential income decline in the copper business.

Global copper smelters led by Jiangxi Copper Corporation and Guixi of China are negotiating with global miners for conversion charges ranging at $70-89 a tonne (Tc) and refining charges (Rc) of US cents 7.0-8.9 a pound (about 450 gm) for the calendar year (CY) 2018. These ranges