China's first concentrated solar power (CSP) plant in Northeast China—the CGN Jixi Base 100 MW CSP plant—commenced power generation today in Da'an City, Jilin Province, marking a new breakthrough in the application of CSP technology in high-latitude, severely cold regions. Located at 45.36 degrees north latitude with an installed capacity of 100 MW, the plant features a thermal storage duration of up to 8 hours and is capable of 24-hour continuous operation, utilizing a large-area heliostat field array to focus sunlight for heat collection and energy storage.

[SMM Lead Market News Flash] It was reported that CME Group, in a statement released last Friday, approved the application of GKE Metal Logistics Pte. Ltd., allowing it to store aluminum ingots and lead ingots meeting the delivery standards of New York Mercantile Exchange (COMEX) aluminum and lead futures contracts in the Hong Kong Special Administrative Region of China. The approved indoor storage capacity for aluminum and lead at GKE is 6,500 mt.

Compared with the end of 2024, during this year’s CESCO week, Chinese smelters accelerated the pricing rhythm for 2026 domestic copper cathode long-term contracts. It is reported that first-round offers for major copper cathode brands circulating in East China are mostly above RMB 180/mt. This article provides a brief summary of current long-term contract quotations across different regions.

Copper prices hit new record highs again this week. LME copper successfully broke through and held above the $12,000/mt mark before the Christmas holiday, while SHFE copper surged above 97,000 yuan/mt towards the end of the week, with the price center significantly elevated and market sentiment clearly bullish. From a macro perspective , renewed expectations for US Fed interest rate cuts were the main driver. US ADP employment data came in significantly below expectations, and the persistently weak ISM manufacturing PMI indicated sluggish economic momentum, collectively reinforcing market bets on a 25-basis-point rate cut in December. The US dollar index remained under pressure and pulled back throughout the week, providing clear support for copper prices. On the fundamentals side, the long-term contract benchmark for copper concentrate TCs was set at $0/mt. According to SMM, the CSPT held its Q4 2025 general manager meeting in Shanghai on the morning of December 25. The CSPT Q4 2025 general manager meeting decided not to set a reference figure for spot copper concentrate TCs in Q1 2026. As sulphuric acid prices showed a pullback trend, concerns emerged about production maintenance pressures at some smelters in 2026. With copper prices repeatedly hitting record highs, coupled with factors such as the off-season, the spot market turned sluggish, and spot premiums fell sharply. Looking ahead to next week, capital-side sentiment is expected to become the dominant factor driving copper prices, with the overall strong performance of the non-ferrous metals sector providing solid support. LME copper is expected to fluctuate between $12,400-12,800/mt, while SHFE copper is forecast to trade between 97,500-100,000 yuan/mt. In the spot market, both supply and demand are expected to weaken as transactions shift to cargoes with invoices dated next month. Spot prices against the SHFE copper 2601 contract are expected to range from a discount of 300 yuan/mt to a discount of 150 yuan/mt.

SMM Morning Meeting Minutes: LME copper opened at $12,191/mt overnight, maintaining high-range fluctuations after opening. After touching a high of $12,230/mt, its price center gradually declined, then touched a low of $12,028/mt, before rising again and fluctuating rangebound to finally close at $12,133/mt, up 0.65%. Trading volume decreased by 8,111 lots to 18,000 lots, and open interest fell by 2,248 lots to 340,000 lots, largely driven by bears reducing positions. The most-traded SHFE copper contract 2602 opened at 95,910 yuan/mt overnight, hitting a high of 96,000 yuan/mt early in the session. Copper prices then gradually moved lower, probing a low of 94,180 yuan/mt, and finally closed at 95,020 yuan/mt, down 0.25%. Trading volume decreased by 162,000 lots to 145,000 lots, and open interest fell by 14,000 lots to 244,000 lots.

According to SMM, the CSPT held its 2025 Q4 general manager office meeting in Shanghai on the morning of December 25. During the meeting, it was decided that no reference number for spot cu cons TC/RCs would be set for the Q1 2026.

[SMM Analysis:It was like holding up a collapsing tower]Over the past three years, as China's smelting capacity for primary smelting has been concentratedly commissioned, year-end negotiations between Chinese smelters and Antofagasta have been particularly challenging. Since the end of last month, Antofagasta consistently maintained its Benchmark offer to Chinese smelters in the mid-negative $10 from the first to the second round. During this period, the China Smelters Purchase Team (CSPT) and the China Nonferrous Metals Industry Association repeatedly stated their firm stance: they would not accept any long-term pricing system other than the Benchmark, would not accept a negative Benchmark result, and were determined to reduce primary smelting output. Expectations for production cuts in primary smelting among Chinese copper smelters grew stronger. Facing these difficulties head-on, Chinese smelters, with one leading enterprise arguing forcefully on principle and without conceding on other terms, finally reached a $0 agreement with Antofagasta on the night of December 19, paving the way for other participating Chinese smelters to follow suit. Prior to this, market pessimism was rampant, with bearish narratives circulating widely. Given the mining company's persistent negative offers over multiple rounds, the market generally expected Chinese smelters to reluctantly accept a negative figure, ushering in an era of negative annual contracts. From the outcome, these negotiations were nothing short of turning the tide and preventing a catastrophic collapse.

Given that the current copper concentrate TC/RCs and related pricing terms have severely deviated from reasonable market levels, and in order to promote the healthy, stable, and high-quality development of the global copper industry while implementing relevant national policies against involution, the China Smelters Purchase Team (CSPT) recently conducted further discussions and reached the following consensus, which member companies will strictly adhere to: Reduce production capacity load by more than 10% in 2026 to improve the supply-demand fundamentals of copper concentrate. Uphold the Benchmark system, strengthen direct cooperation with mining companies, and firmly resist unreasonable index-based pricing models imposed by traders. Establish a supervision and management mechanism to enhance the group's management and oversight of member companies' participation in spot bidding and spot procurement activities, preventing malicious competition. Implement a blacklist system, initiating monitoring and evaluation of suppliers and inspection agencies, and jointly boycott those suppliers and inspection agencies that maliciously disrupt the market.

In response to the spirit of opposing "internal competitive consumption" within the copper smelting industry, as emphasized at the September 24 council meeting of the Xiong'an Nonferrous Metals Association, and to promote the healthy and stable development of the copper industry, the CSPT Third Quarter General Manager Meeting has reached the following consensus: 1.CSPT member companies firmly support the BM system and are committed to actively working toward achieving BM targets to maintain the stable operation of the industry. 2.Member companies resolutely oppose the use of pricing methods based on the average index of traders and smelters in procurement contracts. 3.The meeting calls on member companies to standardize bidding and procurement figures for smelters, strictly adhere to cost bottom lines, and prevent vicious competition. 4.The CSPT group will, based on the principles of fairness, impartiality, andgood faith performance, periodically rank suppliers and inspection arbitration institutions and implement a blacklist system as appropriate.

[Steel Mill Maintenance] Liang Lian Steel plans to halt its CSP thin slab continuous casting and rolling production line for upgrading on September 10, with the expected duration of the upgrade being 6 months. The daily impact on HRC production is approximately 4,000 mt. After the shutdown, the hot metal will be redirected to construction materials. [SMM Steel]