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| Copper Concentrate |
Major Trading Houses Position for Copper Market Tightness in 2026
Mercuria and Glencore have signed offtake deals totaling at least $450 million to secure copper concentrate supply. These agreements reflect proactive positioning amid a projected 2-million-tonne global deficit in 2026. In particular, prepayment facilities are now a standard feature in such agreements, supporting miners’ growth strategies and ensuring timely concentrate delivery.
Mercuria finalized a 100% offtake agreement with Bulgarian miner Geotechmin for 195,000 wet metric tonnes of copper concentrate from the Ellatzite mine. The deal includes a $250 million prepayment facility, signaling confidence in Geotechmin’s operational standards. Meanwhile, Glencore is progressing documentation with Orion Minerals for a $200–250 million financing and offtake agreement for the Prieska copper-zinc project in South Africa.
Implications for European and Global Copper Markets
These deals coincide with a tightening copper market and rising concentrate premiums. Mercuria has previously deployed nearly $2 billion in copper concentrate agreements across Europe, Latin America, and Asia. Nicholas Snowdon, Mercuria’s head of metals research, noted that the 2026 market squeeze will increase both concentrate and refined copper prices. Meanwhile, European initiatives, including Germany’s engagement with Troilus Mining in Quebec, underline growing government interest in securing raw materials amid supply constraints.
Recent copper concentrate trading indicated slight price declines in late December, with spot TC indices for Asia Pacific around $(69.70) per tonne, down $1.40 week-on-week. Nonetheless, the structural supply deficit and rising industrial demand suggest further market tightening. Offtake deals now serve not only as financing mechanisms but also as strategic tools for securing critical metal flows for recyclers, smelters, and industrial users.
ScrapInsight Commentary
Mercuria and Glencore’s offtake agreements highlight an urgent strategy to mitigate copper supply risk ahead of 2026. Structural deficits may push concentrate premiums higher, benefiting miners with secured prepayment contracts. European and global policy initiatives indicate growing alignment between trade, investment, and circular economy objectives.
