Aurubis EIB copper expansion loan strengthens Europe’s critical copper supply

Aurubis

The Aurubis EIB copper expansion loan marks a major step in Europe’s critical raw materials strategy. The €200mn investment loan from the European Investment Bank (EIB) will fund capacity growth at Aurubis sites in Bulgaria and Germany. As a result, the Aurubis EIB copper expansion loan directly targets higher refined copper output and more recycled copper flows into EU industry.

The Aurubis EIB copper expansion loan is also the first EIB metals-sector financing under the bank’s new raw materials strategy. In March, the EIB committed to lend around €2bn a year to critical raw materials projects. These include extraction, processing, recycling and substitution technologies across the energy transition value chain. Therefore, the Aurubis EIB copper expansion loan serves as an early flagship for this new mandate.

EIB backs primary and secondary copper growth at Pirdop and Hamburg

Aurubis will use the EIB loan to expand both primary and secondary copper capacity. At Pirdop in Bulgaria, the company is investing €120mn to enlarge its tank-house. This expansion will lift refined copper cathode capacity by 50pc to 340,000 t/yr. Commissioning is planned for fiscal year 2025-26, adding meaningful volumes to Europe’s copper pool.

At the same time, Aurubis will invest €190mn in its Hamburg smelter and refinery complex. The project will enable an extra 30,000 t/yr of recycled copper scrap processing, alongside more internal smelting intermediates. Therefore, the Aurubis EIB copper expansion loan supports both mined copper and circular copper streams. This dual focus directly aligns with EU priorities on recycling, resource efficiency and lower embedded emissions.

These expansions will further cement Aurubis’ position as Europe’s largest copper producer. Increased output from Pirdop and Hamburg should improve regional security of supply. That security is critical as copper demand rises for grid upgrades, renewables, electric vehicles, artificial intelligence and data centre infrastructure.

Copper market vulnerability drives EU support for Aurubis

Recent market dynamics underline why the Aurubis EIB copper expansion loan matters for Europe. Earlier this year, a huge influx of global copper flowed into the US. End-users and traders stockpiled metal ahead of expected US copper import tariffs that never materialised. However, the diversion exposed how quickly European copper availability can tighten when trade flows shift.

Europe’s vulnerability stems from its heavy dependence on imported copper concentrates and refined metal. Any tariff scare, logistics disruption or geopolitical shock can pull units away from the Atlantic basin. Therefore, building more regional smelting, refining and recycling capacity has become a strategic priority. The Aurubis EIB copper expansion loan is a concrete step toward that goal.

By boosting both primary cathode output and recycled copper processing, Aurubis supports a more resilient supply base. Meanwhile, EIB-backed capital lowers financing costs and signals strong policy alignment. Over time, this combination could help stabilise European copper premia and reduce exposure to external shocks.

The Metalnomist Commentary

Aurubis’ deal with the EIB shows how copper is moving to the centre of Europe’s industrial and energy transition policy. The mix of primary capacity growth and scrap-based expansion reflects a realistic view of future copper constraints. Market participants should watch how quickly the new tank-house and Hamburg upgrades translate into additional cathode and scrap-processing volumes, especially if trade tensions divert metal again.

Hailiang Saudi Copper JV Targets Middle East Processing Growth

Rawas

Hailiang Saudi copper JV plans will give Chinese copper products producer Zhejiang Hailiang a new manufacturing platform in Saudi Arabia. The company plans to form a joint venture with Saudi investment firm Rawas to build a $566mn copper processing plant at the port of Dammam.

The Hailiang Saudi copper JV is planned with 150,000 t/yr of copper processing capacity. The plant will include copper pipes, copper bars, recycled copper and copper foil, giving the project a broad downstream product mix.

The agreement gives Hailiang a 51% stake in the venture, while Rawas will hold 49%. The project still requires approval from the Saudi government and Hailiang’s shareholders before the partners finalise the investment.

The Hailiang Saudi copper JV reflects a wider shift in the copper products industry. Chinese processors are increasingly looking overseas to secure market access, reduce trade exposure and position closer to growth regions in the Middle East, Europe and Africa.

Dammam Plant Adds Copper Foil and Recycling Capacity

The planned Dammam plant will include 30,000 t/yr of copper pipe capacity and 20,000 t/yr of copper bar capacity. These products support construction, cooling systems, power infrastructure, industrial equipment and manufacturing supply chains.

The project also includes 50,000 t/yr of recycled copper capacity. This is strategically important because copper scrap is becoming a more valuable feedstock as concentrate markets tighten and buyers seek lower-carbon copper units.

The planned 50,000 t/yr of copper foil capacity adds a higher-value growth angle. Copper foil is used in batteries, electronics, printed circuit boards and advanced electrical applications. That gives the project relevance beyond traditional copper tube and bar markets.

The product mix suggests Hailiang is not only targeting commodity copper processing. It is building a downstream platform that can serve infrastructure, energy, electronics and battery-related demand from one regional base.

Dammam also offers logistical value. A port location can support raw material imports, finished product exports and access to Gulf, African and European customers. This could help Hailiang build a wider regional distribution network.

Saudi Arabia Gains Value-Added Copper Manufacturing Role

Hailiang said it aims to capitalise on Saudi Arabia’s copper ore resources, energy cost advantages and policy environment. These factors align with Saudi Arabia’s wider ambition to expand industrial manufacturing and mineral value chains.

For Saudi Arabia, the project could support a shift from resource availability toward value-added processing. Copper products are increasingly important for grids, buildings, cooling systems, EV infrastructure, renewable energy and industrial electrification.

The inclusion of recycled copper also fits the growing importance of circular metal supply. If Saudi Arabia can combine scrap collection, energy advantages and downstream manufacturing, it could strengthen its role in regional copper supply chains.

However, the project faces uncertainty. Hailiang said it is closely monitoring Middle East developments and their potential impact on site selection, construction progress, personnel safety and future operations.

The construction timeline has not yet been fixed. The partners will determine the schedule according to market conditions after the joint-venture agreement receives the required approvals.

This cautious approach is important. Middle East industrial projects can offer strong energy and logistics advantages, but geopolitical risk, financing timing, permitting and supply-chain security can still affect execution.

The Metalnomist Commentary

Hailiang’s Saudi venture shows how Chinese copper processors are internationalising downstream capacity, not only exporting products. The project’s real value lies in combining copper foil, recycling and regional market access inside Saudi Arabia’s industrial diversification strategy.

Sofia Med Copper Fabricator Secures EBRD Loan to Raise Recycled Metal Use

Sofia Med

Sofia Med copper fabricator has secured a €20 million loan from the European Bank for Reconstruction and Development to increase recycled metal use and reduce water waste at its Bulgarian operations. The financing supports Europe’s wider effort to strengthen domestic copper processing and improve resource efficiency.

The loan is also notable because it is the first EBRD financing in Bulgaria that allows the borrower to pay a lower interest rate if it meets green targets. These targets are linked to recycling and water efficiency, making the facility’s environmental performance part of its financing cost.

Sofia Med copper fabricator is owned by Greek metals group Viohalco and operates downstream rolling and extrusion lines. The company processes refined copper into tubes, sheets and profiles for industrial users.

Recycled Copper Becomes Strategic for European Fabricators

European copper fabricators are increasingly important because they sit close to final industrial demand. They convert refined copper and scrap into semi-finished products used in construction, power equipment, manufacturing, heating systems and infrastructure.

Sofia Med can raise the share of secondary metal in its feedstock if suitable scrap is available. This matters because recycled copper can reduce emissions, lower dependence on primary metal and support Europe’s circular economy goals.

However, Europe still exports large volumes of copper scrap. This limits local availability for refiners and fabricators, creating a policy challenge as Brussels tries to retain more strategic raw materials inside the region.

Brussels Pushes to Keep Copper Scrap in Europe

The loan comes as Brussels considers tighter export rules under its RESourceEU plan. The aim is to protect local supply of recyclable materials and support European processing capacity.

The EBRD and European Investment Bank are also backing projects across the copper value chain. Aurubis secured a €200 million EIB loan last September to expand its Pirdop tankhouse, showing that European institutions are targeting both refining and downstream fabrication.

The €20 million loan for Sofia Med is still only a limited part of the upgrades the site may need. Its impact will depend on how much copper scrap the company can secure and how quickly it can reduce water waste.

The Metalnomist Commentary

Sofia Med’s loan shows that recycled copper is becoming part of Europe’s industrial security agenda. The next challenge is not only financing upgrades, but keeping enough copper scrap inside Europe to feed refiners and fabricators.

China Expands Copper and Aluminium Duty Exemptions for 2025

Recycled Copper

In a bid to promote sustainable growth, China has announced expanded import duty exemptions on recycled copper and aluminium feedstocks for 2025. This change is part of the country’s broader strategy to bolster green and low-carbon development in its metal industries. The move reflects China’s ongoing efforts to ease restrictions on secondary copper and aluminium imports, which could have significant implications for both domestic and international markets.

Expansion of Duty Exemptions

Under the new policy, China will expand the HS code 74040000 to include “recycled copper and alloy feedstock” for 2025, up from just "recycled brass copper feedstock" and "recycled copper feedstock" in 2024. Similarly, the HS code 76020000 will also broaden to cover “recycled aluminium and alloy feedstock” from the previous scope of "recycled cast aluminum alloy feedstock" in 2024. The import duties for both categories will remain at zero for 2025, continuing the exemptions in place for 2024.

This expansion is intended to enhance the country’s circular economy and support the shift toward greener practices in the recycling and processing of metals. According to China’s Ministry of Commerce, the adjustments will help promote low-carbon development, driving demand for sustainable production methods.

The move follows an increase in China’s copper scrap imports, which saw a 14% rise from January to November in 2024 compared to the previous year, signaling a positive trend for the country's metal recycling sector.

Continued Duties on Other Base Metals

While China is easing import duties on certain recycled metals, the government has decided to keep export duties on various base metals, minor metals, ferro-alloys, and rare earths in place for 2025. This includes maintaining the 40% export duty on ferro-chrome, a 25% duty on silico-manganese and ferro-silicon, and a 20% export duty on ferro-manganese. These duties align with China’s broader objective of controlling the export of energy-intensive and pollution-heavy products.

The country will also continue with export duties on a variety of concentrates, such as lead, zinc, tantalum, and niobium, as well as a 20% duty on tin, tungsten, and antimony concentrates, which are less frequently exported due to China’s limited domestic resources of these metals. Additionally, China will maintain duties on several metals, including a 5-15% export duty on copper, nickel, and zinc alloys and products.

China's new policy also includes a zero import duty on spodumene for 2025, marking another significant move in its strategic approach to securing key raw materials for its growing battery and electronics industries.

China Copper Scrap Cash Spreads Widen Amid Price Fluctuations

China Copper Scrap

Cash spreads for Chinese copper scrap imports have increased from last week due to lower copper prices on major exchanges.  Scrap sellers maintained firm offers as LME copper prices fell to a four-month low of $8,757/tonne on December 31st.

Import Arbitrage Loss and Tariff Exemptions

China's copper scrap import arbitrage loss widened to -1,000 yuan/tonne ($137/tonne) this week, compared to a small profit in late December. This widening loss is attributed to lower domestic spot copper metal prices relative to LME prices, resulting in limited trading activity.  Despite this, China will expand its import duty exemptions on more recycled copper feedstocks in 2025. The government has broadened the products included under HS code 74040000 to "recycled copper and alloy feedstock" for 2025, from "recycled brass copper feedstock and recycled copper feedstock" in 2024. The import duty for this HS code remains at zero for both years.  However, market participants remain cautious about importing copper scrap from the US, even with the expanded tariff exemptions in 2025.

Market Outlook and Price Rebound

LME three-month copper prices have since rebounded, rising from a close of $8,781.50/tonne on December 31st to a close of $8,980/tonne on January 7th.  Positive investor sentiment has been fueled by the People's Bank of China announcement of increased financial support for technology innovation and consumption, along with measures to enhance liquidity, safeguard capital markets, and potential reductions in interest rates and the reserve requirement ratio for banks.

China's Copper Scrap Imports Surge in 2024 Amid Tight Supply and Policy Changes

Copper Scrap

China’s copper scrap imports saw a notable 13% increase in 2024 as domestic refined copper producers turned to scrap due to a tightening copper concentrate supply. This shift helped offset the shortages in copper concentrate, which traditionally serves as the primary feedstock for refining operations. The increased demand for scrap also led to a significant month-on-month rise in December, with imports soaring by 25% compared to November.

December Surge Attributed to Price Dynamics and US-Related Imports

A key factor contributing to this December surge was the reopening of the import arbitrage in the second half of November. This shift occurred as domestic copper metal prices in China rose above those on the London Metal Exchange (LME), making imports more economically viable. Additionally, scrap buyers accelerated the clearance of US-origin copper scrap at customs to avoid potential countermeasures after the election of US President Donald Trump. This urgency, combined with strategic import decisions, led to a marked rise in imports in the final month of the year.

Government Policy Supports Copper Scrap Imports in 2025

In a bid to further boost the availability of copper scrap, China has expanded its import duty exemptions for recycled copper feedstocks. For 2025, the government broadened the scope of products under HS code 74040000 to include not only recycled brass and copper feedstocks but also recycled copper and alloy feedstocks. Import duties for these materials remain at zero, a move that further encourages the import of scrap and helps meet the growing demand for copper in China.

Copper Cathode Output Declines in 2023-24

Aurubis, Europe’s leading copper producer and recycler, reported a 4% drop in its copper cathode production for the 2023-24 fiscal year, totaling 578,000 tons. The decline was driven by a 30% reduction in output at its Hamburg facility, where operations were delayed following a maintenance shutdown. Despite the setback in Germany, the company maintained a solid performance in Bulgaria, with 229,000 tons produced at its Pirdop site.

Copper Demand to Surge by 2.6% Annually Through 2035: BHP

BHP : Copper

BHP, the Australian mining giant, has projected that global copper demand will experience a significant increase, growing by 1 million tonnes per year until 2035. This rise is fueled by the ongoing global energy transition and the rapid expansion of the digital sector, according to a report released on Monday.

Over the past 75 years, copper demand has grown by 3.1% annually, but growth slowed to 1.9% in the 15 years leading up to 2021. However, BHP anticipates that the annual growth rate will rebound to 2.6% by 2035, driven by rising living standards and continued demand from developed economies. The report further highlighted that global copper demand is expected to grow by around 70% by 2050, reaching more than 50 million tonnes annually, an average growth rate of 2% per year.

The Role of Energy and Recycling in Future Copper Demand

A key factor in the rise of copper demand is the energy transition, which is projected to account for 23% of global copper consumption by 2050, a significant increase from the current 7%. The digital sector's share of copper usage is also expected to rise, from 1% today to 6% by mid-century.

In response to this increasing demand, recycled copper will play a pivotal role, with scrap copper supply expected to rise from approximately one-third of total copper consumption today to 40% by 2035. By 2050, recycled copper could constitute up to half of global copper usage, a vital component in bridging the supply gap.

However, challenges remain. BHP has identified the rising costs of production and declining ore grades—down 40% since 1991—as significant concerns for future copper supply. To meet the growing demand, the world will need an additional 10 million tonnes of newly mined copper annually over the next decade.

Cyclic Materials and Glencore Forge Partnership for Recycled Copper

Cyclic Materials

In a move that underscores the growing emphasis on sustainability in the metals industry, Cyclic Materials and Glencore have entered into a strategic partnership to enhance the circular supply chain for copper in North America. Announced today, this collaboration sees Cyclic Materials, a prominent metals recycler, supplying recycled copper sourced from end-of-life electric motors to Glencore, a major player in global mining and trading.

Advancing Circular Economy in Critical Minerals

The copper will be initially processed at Cyclic's specialized "spoke" plant located in Ontario, Canada. This facility is equipped to handle the breakdown of electric motors, extracting valuable copper which is then sent to Glencore's Horne smelting facility in Quebec. Here, the scrap copper is transformed into copper anodes before undergoing further refinement into copper cathodes at Glencore’s Canadian Copper Refinery near Montreal.

Strategic Expansion and Future Plans

This partnership marks a significant step for Cyclic Materials as it seeks to expand its operations to commercial scale across North America, as well as in the US and Europe. The deal also complements Cyclic’s recent initiatives, including the production of recycled mixed rare earth oxide (rMREO) at its new Hub100 facility in Ontario. Earlier this year, Cyclic also entered into a critical supply agreement with Belgium's chemical group Solvay and secured additional feedstock agreements with Synetiq in England and E-VAC Magnetics in the US, both of which will supply rare earth elements crucial for Cyclic's operations.

While the specifics of the production volumes and financial terms remain undisclosed, the multiyear offtake agreement between Cyclic and Glencore is set to significantly impact the supply chain dynamics for recycled copper and potentially influence broader market trends.

Aurubis Reports Increase in Copper Cathode Output for Q4 2024

Aurubis

Copper Concentrate Throughput Declines, but Recycling and Cathode Production Rise

Aurubis, Europe’s largest copper producer and recycler, reported a positive performance in copper cathode and recycled cathode production for the fourth quarter of 2024. However, the company also saw a decrease in copper concentrate throughput during the same period, reflecting some challenges in its operations.

Growth in Copper Cathode and Recycled Cathode Production

In the October-December period of 2024, Aurubis produced 152,000 tonnes of copper cathode, marking a 1% increase from the previous year. This output consisted of 95,000 tonnes from its Hamburg plant in Germany and 57,000 tonnes from its Pirdop site in Bulgaria. The increase in production reflects Aurubis’ strong operational performance in copper cathode production.

Aurubis also reported a 4% increase in recycled cathode output, which reached 130,000 tonnes in Q4 2024. This growth was driven by higher production at its Lunen site in Germany, which saw a 27% increase in recycled cathode output. Lunen’s output reached 42,000 tonnes, supported by higher tankhouse capacity. The company’s Beerse and Olen sites in Belgium also contributed 6,000 tonnes and 82,000 tonnes, respectively, to the overall recycling output.

Decline in Copper Concentrate Throughput

On the downside, Aurubis experienced a 7% decrease in copper concentrate throughput in the fourth quarter, amounting to 601,000 tonnes. The decrease was largely attributed to a 13% reduction in production at the Hamburg site, which produced 261,000 tonnes. Despite the decline, the company’s overall performance remained strong due to the rise in copper cathode and recycled cathode output.

Aurubis also saw a significant improvement in its financial results, with operating profit before tax increasing by 17% to €130 million ($135 million). This was attributed to higher metal results and stronger earnings from its copper products, reinforcing the company’s strong position in the copper market.

Heli Secondary Copper Capacity Expansion Signals China’s Recycling Push

Jiangxi Heli

China’s Heli secondary copper capacity expansion will lift recycled copper output in Jiangxi. The project upgrades and relocates Heli’s smelter in Shangrao, targeting 200,000 t/yr of refined copper. As a result, the Heli secondary copper capacity expansion supports supply security amid tight concentrate markets. Therefore, the Heli secondary copper capacity expansion strengthens China’s circular-economy copper strategy.

Why Jiangxi’s upgrade matters for copper supply

Jiangxi is a national copper hub with strong refining and fabrication. Heli’s upgrade adds scale while using scrap, sludge, and other secondary feedstocks. Meanwhile, parent firm Fuye plans a 180,000 t/yr secondary smelter nearby. Together, these moves deepen regional clustering and logistics advantages.

Secondary copper rises as concentrates stay tight

Persistent concentrate tightness is accelerating China’s secondary shift. Secondary copper already supplies a growing share of cathode demand. Consequently, new capacity helps stabilize cathode availability and reduce import exposure. It also lowers carbon intensity versus primary smelting, aiding downstream ESG goals.

China produced 2.9mn t of secondary copper in 2024. That accounted for 62.7% of global secondary output. Therefore, incremental Jiangxi capacity will influence global scrap flows and premiums. Other recyclers, including Jiangxi Bailian, are also expanding in the province.

The Metalnomist Commentary

China is locking in a scrap-first hedge against concentrate volatility. Expect tighter global scrap balances and firmer high-grade scrap premiums. Regional clustering in Jiangxi will compress unit costs and attract more downstream fabricators.

Rio Tinto Copper Output Rises as Oyu Tolgoi Offsets Lithium Weakness

Rio Tinto

Rio Tinto copper output increased in the first quarter as stronger production from the Oyu Tolgoi mine in Mongolia lifted the group’s global copper performance. The UK-Australian miner produced 229,000t of consolidated copper in January-March, up 9% from a year earlier.

Rio Tinto copper output growth was driven mainly by copper in concentrates from Oyu Tolgoi, where production rose by 56% to 102,000t. The ramp-up helped offset weaker concentrate output at Escondida and lower refined copper production at Kennecott.

The first-quarter result shows the changing shape of Rio Tinto’s portfolio. Copper is gaining strategic weight as electrification, grids and industrial infrastructure support long-term demand, while lithium remains more exposed to weather, ramp-up timing and early-stage project execution.

At the same time, Rio Tinto reported higher alumina production but weaker bauxite and lithium output. Heavy rainfall and cyclone-related disruptions affected Australian bauxite mines, while weather events in Argentina reduced lithium carbonate equivalent production.

Copper Growth Strengthens Despite Mixed Mine Performance

Oyu Tolgoi was the strongest contributor to Rio Tinto copper output in the first quarter. Its continued ramp-up in Mongolia lifted copper in concentrates production to 102,000t, reinforcing the mine’s role as one of the group’s most important growth assets.

The result matters because large copper projects are increasingly difficult to bring into stable production. Oyu Tolgoi gives Rio Tinto a major long-life copper source at a time when global mine supply remains vulnerable to grades, permitting delays and operational disruptions.

Escondida delivered a mixed quarter. Refined copper output at the Chilean operation rose by 21% to 16,000t, but concentrates production fell by 14% to 77,000t.

Kennecott in the US was weaker. Refined copper production fell by 20% to 34,000t because of lower anode inventories after unplanned smelter maintenance and reduced concentrator throughput caused by geotechnical constraints.

Rio Tinto kept its full-year copper production guidance unchanged at 800,000-870,000t. This suggests the company sees first-quarter disruptions as manageable within its broader 2026 plan.

The company also began drilling at the Resolution Copper project in Arizona after completing the land exchange in March. Resolution remains strategically important because it could become a major US copper source if development advances.

Rio Tinto copper output therefore carries both short-term and long-term significance. Oyu Tolgoi is already lifting production, while Resolution represents future supply optionality in a market increasingly focused on domestic and allied copper sources.

Lithium Falls as Weather Disrupts Argentina Operations

Rio Tinto’s lithium performance weakened sharply in the first quarter. Attributable lithium carbonate equivalent production fell by 26% on the year to 12,700t.

The decline was caused by heavy rainfall and weather events that disrupted operations at Olaroz and Fenix in Argentina. These disruptions show that lithium brine and carbonate operations remain sensitive to weather, water balance and site logistics.

The continued ramp-up at the Rincón starter plant partly offset the production impact. Rincón is important for Rio Tinto’s lithium strategy because it supports the company’s expansion into battery materials.

Rio Tinto maintained its 2026 LCE production guidance at 61,000-64,000t. First production from Fenix 1B and Sal de Vida remains on track for the second half of 2026.

The aluminium chain also showed mixed results. Primary aluminium output rose by 1% on the year to 835,000t, but fell by 2% from the previous quarter.

Alumina production increased by 6% to 2.04mn t, while bauxite production fell by 11% to 13.28mn t. Heavy rainfall at Weipa in Queensland and cyclone-related shutdowns at Weipa and Gove reduced bauxite output.

Recycled aluminium production also fell by 8% to 61,000t. Rio Tinto kept 2026 guidance unchanged for primary aluminium, alumina and bauxite, indicating confidence in recovery through the year.

The first-quarter data show a portfolio with different operating pressures. Copper is benefiting from major mine ramp-up, lithium is facing weather disruption, and aluminium raw materials are exposed to Australian climate events.

The Metalnomist Commentary

Rio Tinto’s first quarter shows why diversified miners need both growth assets and operational resilience. Oyu Tolgoi is strengthening Rio Tinto copper output, but weather-linked lithium and bauxite disruptions show that energy-transition supply chains remain exposed to physical operating risk.

Fuye secondary copper smelter to add 180kt/yr capacity in Jiangxi

Fuye

Fuye secondary copper smelter plans will lift China’s recycled copper capacity. The Fuye secondary copper smelter will produce refined copper using scrap and residues. As a result, the Fuye secondary copper smelter strengthens supply amid concentrate tightness.

Capacity and feedstocks

Fuye will build a 180,000 t/yr secondary smelter in Shangrao, Jiangxi. The plant will process copper scrap, ingot, and electrolytic residues. The company did not disclose construction or launch dates. Fuye already runs three Chinese smelters totaling 800,000 t/yr.

Fuye’s 620,000 t/yr Heding smelter is co-owned with Jiangxi Copper. It also owns the Hefeng and Heli secondary smelters with 190,000 t/yr. Therefore, the new project deepens a recycling-focused footprint.

Scrap dynamics and market context

Copper scrap is filling a structural gap in concentrates. Scrap supplied nearly 20pc of global refined output in 2024, per ICSG. China’s copper scrap imports held near 1.15mn t in first-half 2025. Trade frictions had limited impact on volumes.

Pricing signals support steady scrap inflows. Metalnomist shows bare bright import cash spreads at 98.5–99pc of LME. #1 scrap held at 97.3–98.2pc and #2 at 94.5–95.5pc. Such levels keep scrap competitive versus cathode.

The Metalnomist Commentary

Fuye’s move underscores China’s push to derisk concentrate exposure with recycling. Location in Jiangxi aligns feedstock pools, established logistics, and OEM demand. Watch permitting cadence and long-term scrap contracts to gauge ramp speed.

Mitsubishi Materials Onahama Copper Plant Shutdown Signals Pressure on Japanese Smelting

Mitsubishi Materials

Mitsubishi Materials Onahama copper plant operations will be suspended by the end of March 2027 after rising costs, tougher concentrate terms, and overseas competition weakened profitability. The Japanese metals group decided on 25 March to close the site’s copper smelting and refining operations as part of a broader structural reform.

The Mitsubishi Materials Onahama copper plant had already faced cost-cutting measures, including reduced copper concentrate processing and the suspension of certain processes. However, these steps failed to restore earnings as copper concentrate purchase terms deteriorated sharply.

The decision highlights the growing pressure on traditional copper smelters. When treatment and refining charges fall below zero, smelters effectively pay miners or traders to process concentrate, reversing the normal economics of the business.

Negative Treatment Charges Reshape Copper Smelting Economics

Copper concentrate treatment charges and refining charges have collapsed since January 2025, falling below $0/t and $0/lb on a cif China basis. The latest assessments stood at -$67/t and -$6.7/lb on 20 March, showing how tight concentrate supply and intense smelter competition have distorted processing margins.

This environment has become especially difficult for Japanese smelters, which face high operating costs and competition from larger overseas facilities. For Mitsubishi Materials, the Onahama operation could no longer secure profitability under these market conditions.

MMC expects to book an impairment loss of ¥21 billion, or about $132.5 million, in its January-March quarterly report. Most of that loss will be linked to fixed assets at the Onahama smelter and refinery.

E-Scrap and Secondary Smelting Become MMC’s Strategic Direction

Mitsubishi Materials Onahama copper plant closure is part of MMC’s policy of creating future growth through resource circulation. The company aims to expand secondary smelting operations that use electronic scrap and copper scrap as raw materials.

This shift reflects a broader industry trend. Copper producers are increasingly looking at recycled feedstock to reduce exposure to volatile concentrate markets, improve sustainability, and secure alternative metal units.

Not all Onahama operations will close. The electrolytic plant and facilities not directly tied to copper concentrate processing, including the precious group metals plant, will continue operating beyond the smelting and refining shutdown.

The Metalnomist Commentary

MMC’s Onahama decision shows that copper smelting capacity is being reshaped by concentrate scarcity and recycling economics. Japan’s challenge is not only maintaining copper supply, but repositioning its metallurgical base toward scrap, e-scrap, and higher-value recovery.

Chinalco Boosts Copper Anode Capacity Amid Rising Scrap Use

Chinalco

Major Upgrade at Dianzhong Smelter Targets Increased Output and Efficiency

China’s Chinalco has commenced operations of a new copper anode furnace at its Dianzhong smelter in Chuxiong, Yunnan province. This initiative is part of a 515 million yuan ($70.2 million) upgrade project. The upgrade aims to elevate the smelter’s copper anode production from 191,700 tonnes per year to 249,800 tonnes per year. Furthermore, a 210,000 tonnes per year copper cathode refining facility is set to launch in May.

Increased Scrap Integration

The Dianzhong smelter, previously reliant on copper concentrate, now incorporates a copper scrap feeding facility. This addition aligns with the growing trend of utilizing secondary copper. In 2023, over 31% of China's refined copper output originated from copper scrap, according to the China Nonferrous Metals Industry Association. The rising cost of copper concentrate has driven many producers to favor copper scrap. This shift led to a 14% year-on-year increase in China's copper scrap imports, reaching 2.03 million tonnes from January to November.

Market Implications

This expansion by Chinalco reflects the broader industry trend of adapting to feedstock cost fluctuations and increasing reliance on recycled materials. The upgrade will strengthen Chinalco's copper production capabilities and contribute to the supply of copper cathode. The increased usage of copper scrap also highlights the growing importance of the circular economy within the metals industry.

Mitsubishi cuts copper concentrate processing as TC/RCs squeeze margins

Mitsubishi Materials

Mitsubishi cuts copper concentrate processing to protect profitability at its Onahama smelter. Mitsubishi cuts copper concentrate processing after TC/RCs fall to historical lows. Mitsubishi cuts copper concentrate processing while raising recycled feed to stabilize returns.

Onahama output under review after autumn maintenance

Mitsubishi plans a partial suspension at Onahama following October–November maintenance. The site can produce 25,000 t/month of copper cathode. It also produces 550,000 t/yr of sulphuric acid. However, weaker treatment and refining charges have eroded smelter margins this year. The company will confirm revised cathode guidance once plans finalize.

Recyclables rise as TC/RCs pressure smelters

Mitsubishi will lift copper scrap usage to offset lower concentrate economics. The strategy reduces exposure to volatile TC/RCs and strengthens circular supply chains. Meanwhile, JX Advanced Metals signaled potential curbs at Pan Pacific Copper. Pan Pacific Copper has 650,000 t/yr refined capacity across Japan. JX also increased recycled inputs as concentrate processing profitability fell.

Global market dynamics complicate Japan’s response. Chinese smelters kept output stable despite low TC/RCs. Strong by-product credits and firm domestic demand supported operations. China’s refined copper production rose 9.5pc year on year in January–June. As a result, Japanese smelters face tougher competition and thinner margins.

The Metalnomist Commentary

Japan’s pivot to scrap underscores a structural shift toward circular copper supply. Watch how higher scrap ratios, by-product pricing, and sulfuric acid demand reshape smelter economics. If TC/RCs stay weak, more Asian capacity may favor recycling over concentrate.

TSR Acquires German Plant to Expand Copper Alloys Production

TSR Recycling

TSR Recycling, a leading European metals recycler, has successfully acquired Siegfried Jost GmbH & Co NE Metallhandel and its electric melting plant in Menden, Germany. The acquisition strengthens TSR’s position in the copper alloys market by adding advanced production capabilities, particularly in the smelting of copper alloys from recycled raw materials.

Expansion into Copper Alloys and Smelting Expertise

The Menden plant specializes in the production of copper alloys, which are used primarily in industries such as sanitation and glass manufacturing. These alloys include materials such as brass, special brass, nickel bronze, aluminum bronze, and gunmetal. Siegfried Jost also handles production residues like slag, dross, sand, and swarf, which are further processed in the electric melting plant to create high-quality alloys.

TSR’s acquisition not only broadens its portfolio but also allows the company to expand its expertise in smelting processes, particularly for copper alloys produced from recycled materials. The move marks a strategic step for TSR in enhancing its recycling capabilities and furthering its commitment to sustainable metal production. In a LinkedIn post on November 4, TSR emphasized that the acquisition would enable the company to leverage its in-depth know-how of smelting processes to meet the growing demand for high-quality copper alloys in various industries.

Strategic Growth for TSR Recycling

By integrating Siegfried Jost’s advanced alloy production facility, TSR is set to improve its market position and expand its service offerings in the copper alloys sector. The move aligns with the company's broader goals to increase its recycling operations, contributing to both sustainability and the growing demand for recycled metal alloys in European industries.

SRG NuCycle Acquisition Adds Low-Copper Shred Capacity in South Carolina

SRG

SRG NuCycle acquisition will expand Southeast Recycling Group’s scrap processing network with an automotive shredder capable of producing low-copper ferrous scrap. The deal strengthens SRG’s position in the southeastern US recycling market.

SRG NuCycle acquisition includes NuCycle’s Rock Hill, South Carolina, operations, its 4,000-horsepower Danieli shredder and auto parts yard Carolina Salvage. The transaction is expected to close later this month.

SRG NuCycle acquisition is strategically important because low-copper shred is increasingly valuable to steelmakers seeking cleaner ferrous feedstock. Better scrap quality supports electric arc furnace steelmaking, improves melt efficiency and reduces contamination risk in higher-grade steel products.

SRG will also gain downstream non-ferrous recovery capability through NuCycle’s existing system. This adds value beyond ferrous scrap by improving recovery of aluminium, copper, stainless and other non-ferrous fractions.

Low-Copper Shredder Strengthens Ferrous Scrap Quality

The acquired shredder is a 4,000-horsepower 80×108-inch Danieli unit. It includes a ballistic separator designed to produce a low-copper ferrous product.

This matters because copper contamination is one of the most important quality issues in ferrous scrap. Residual copper can limit the use of scrap in flat-rolled and higher-quality steel applications.

Low-copper shred gives processors a stronger product for steel mills that need cleaner scrap feedstock. It also helps bridge the quality gap between obsolete scrap and more controlled prime scrap streams.

SRG had previously planned to install a shredder at one of its existing sites. Instead, it chose to acquire an operating shredder platform, which can shorten the path to capacity and customer access.

The addition of Carolina Salvage also improves feedstock control. Auto parts yards can support shredder supply by bringing end-of-life vehicles and related material into the processing chain.

Consolidation Expands SRG’s Southeast Scrap Platform

SRG is also expanding through a separate merger with Morris Scrap Metal of Kings Mountain, North Carolina. Morris Scrap will join SRG as a new partner.

Once the NuCycle and Morris Scrap deals close, SRG will operate seven locations. The combined platform will have capacity of 300,000 gross tons per year of ferrous scrap and 150mn lb per year of non-ferrous scrap.

This scale gives SRG a stronger regional presence in the Carolinas and the broader southeastern US. It also improves collection density, logistics efficiency and customer coverage.

The deals continue SRG’s consolidation strategy after the company was formed last year from the merger of Carolina Metals Group and Spartan Recycling Group.

US scrap markets are becoming more competitive as steelmakers, aluminium producers and recyclers seek better feedstock quality and more reliable supply. Regional processors with shredding, sorting and non-ferrous recovery capacity are better positioned to serve that demand.

SRG’s expansion therefore reflects a wider industrial trend. Scrap recycling is moving from simple volume handling toward quality-controlled feedstock production for steel, aluminium and other metals supply chains.

The Metalnomist Commentary

SRG’s NuCycle deal shows that scrap processing value is shifting toward quality, not just tonnage. Low-copper shred and better non-ferrous recovery will matter more as US mills demand cleaner, more traceable recycled feedstock.

China Enhances Recycled Aluminium and Copper Imports to Boost Sustainability

China has taken significant steps to facilitate the importation of recycled aluminium and copper, aiming to bolster supply chains and mitigate carbon emissions from energy-intensive industries. This initiative, outlined in a recent notice by the Ministry of Ecology and Environment (MEE), underscores the country's commitment to environmental sustainability.

The MEE's draft regulations propose a reclassification of recycled aluminium, copper, and their alloys, distinguishing them from other solid waste categories. This reclassification will allow these materials to be imported without the stringent restrictions typically imposed on more ecologically harmful waste.

By promoting the import of recycled metals, China is intensifying its efforts to reduce carbon emissions and foster a greener industrial sector. This initiative mirrors a similar policy introduced by the MEE in 2021, which targeted the import of recycled iron and steel raw materials.

These progressive Chinese import regulations stand in stark contrast to the European Union's recent policies on waste material exports. The EU's regulations do not differentiate between waste and recyclable materials, posing challenges for the metal recycling industry.

The MEE is actively seeking market feedback on these proposed changes before finalizing the draft regulations, signaling an inclusive approach to policy formulation.

Amermin tungsten carbide reclamation grant boosts US recycled carbide output

Amermin

Amermin tungsten carbide reclamation grant will scale reclaimed hardmetal production in Texas. The Amermin tungsten carbide reclamation grant totals $11.5mn through a DOE award routed via Melt Technologies. As a result, Amermin plans to expand its Briggs facility around tungsten carbide processing.

The expansion targets up to a 300pc increase in tungsten carbide output. Amermin says it produces virgin-quality tungsten carbide powder from recycled feedstock. Meanwhile, the company also recycles copper, nickel, cobalt, and lithium.

What the DOE award changes for tungsten carbide recycling

The DOE Office of Fossil Energy and Carbon Management supports faster capacity buildout at Briggs. The funding arrived through Amermin’s partner Melt Technologies and focuses on carbide reclamation. Therefore, the site can move from pilot-scale learning to higher-volume conversion.

Melt previously secured $11.5mn, including $5.7mn from DOE, for the pilot facility. That pilot design aimed to process more than 60,000lbs per month of tungsten carbide waste. However, the new scale-up phase should improve throughput, reliability, and powder consistency.

Why reclaimed tungsten matters for industry supply chains

Recycled tungsten carbide supports cutting tools, drilling, and precision machining with lower raw material exposure. Domestic reclamation shortens lead times for manufacturers and reduces logistics risk. Meanwhile, consistent powder quality matters for tool performance and downstream certification.

Amermin tungsten carbide reclamation grant also signals stronger policy backing for circular critical minerals. Capacity growth can pull more scrap into formal channels and stabilize input streams. Therefore, recyclers that secure feedstock contracts will capture the next wave of demand.

The Metalnomist Commentary

This funding favors pragmatic capacity expansion over greenfield mining timelines. However, the winner will be the operator that locks in scrap supply at predictable quality. If Amermin scales smoothly, recycled carbide can become a strategic buffer for US manufacturing.

Aurubis Richmond metals recycling plant boosts US strategic metals supply

Aurubis Richmond metals

The Aurubis Richmond metals recycling plant is ramping up operations in Georgia, strengthening US access to strategic metals. The Aurubis Richmond metals recycling plant will recover copper, nickel, tin and precious metals from complex scrap streams. As a result, the Aurubis Richmond metals recycling plant is becoming an important pillar for US data centres, energy infrastructure and defence supply chains.

Expansion of high-value metals recycling capacity in the US

Aurubis is investing around $800mn in the Richmond facility to process up to 180,000 t/yr of recycled material. The plant will treat printed circuit boards, copper cable and other complex scrap that traditionally flowed to overseas processors. Therefore, the site supports onshore refining of metal units that are essential for electronics and power systems. The company has also signalled an “expansion stage” from 2026, which should further increase throughput and product range. This expansion aligns with rising demand for low-carbon, circular metal supply in North America.

Supporting strategic metals demand from energy and tech

Aurubis expects the Georgia facility to help meet growing US demand for “strategic metals” across several high-growth sectors. Data centres require reliable copper, nickel and precious metal supply for servers, networking and cooling systems. Meanwhile, energy infrastructure and grid upgrades depend on copper-intensive equipment such as transformers and high-voltage cables. Defence and advanced technology applications also need secure access to high-purity metals with traceable provenance. By turning scrap into refined metal, Aurubis reduces import dependence while lowering the environmental footprint of these critical value chains.

The Metalnomist Commentary

Aurubis’ move in Georgia confirms that advanced metals recycling is now strategic infrastructure, not just a waste-management activity. The key question is how fast similar facilities can scale to keep pace with US electrification and data-centre growth. For miners and refiners alike, the circular economy is no longer optional; it is becoming a core competitive advantage.