“If smelters are all running at losses, they will have no motivation to produce. Miners should give smelters more room on TC/RCs to ensure the industry develops healthily,” Wu said.
Smelters, especially those in China, are facing greater pressure from an environmental standpoint, which means greater investment will be needed to comply with new regulations and will add further costs to production, according to Wu.
Some smelters are already carrying out upgrades at their facilities to meet these new stringent regulations, he added.
Chinese authorities have tightened environmental regulations in recent months with companies...