Glencore’s Pasar Copper Smelter in Philippines Moves to Care and Maintenance Amid Market Pressures

Glencore

Falling TC/RCs and Copper Concentrate Shortages Force Shutdown of 200,000 t/yr Refinery in Leyte

Pasar Temporarily Shuts Copper Operations as Smelting Margins Collapse

Glencore-managed Pasar will place its Leyte copper smelter and refinery into care and maintenance due to deteriorating market conditions. The Philippine facility, which produces around 200,000 tonnes per year of copper cathode, has already scaled down or halted production in recent weeks.

Pasar’s move follows a sharp decline in copper treatment and refining charges (TC/RCs), driven by an ongoing global shortage of copper concentrate. With Glencore holding a 78% stake in Pasar, the decision reflects broader industry struggles with input constraints and margin compression.

Global Supply Strain Puts Smelters Under Pressure

TC/RCs have fallen to historical lows as copper smelting capacity continues to grow faster than mine supply. This mismatch has forced smelters worldwide to reassess operations, especially in Asia where Chinese demand often sets the benchmark.

Pasar’s shutdown mirrors a trend across the industry. With concentrate scarcity unlikely to ease in 2024, more smelters may reduce output to stabilize supply chains and support long-term pricing.

Pasar Keeps Site Ready for Restart Pending Market Rebound

Although production has stopped, Pasar will maintain the Leyte site in a condition that allows for a quick restart. The company emphasized that future operations will depend on market recovery and improved smelting economics.

This temporary pause underscores the structural vulnerabilities in the copper value chain, especially as energy transition policies continue to drive long-term demand for refined copper.