Japan's Pan Pacific Copper (PPC) recently proposed a record-high copper premium of $330 per ton for domestic customers in 2026, more than triple the 2025 premium of $88. The sharp increase in premiums is primarily driven by significantly lower processing and refining charges, which have raised costs, as well as market concerns over potential U.S. tariffs on copper ingots, leading to supply tightness in Asia. Previously, Chilean miners and Chinese smelters agreed to reduce the 2026 processing fee to zero, while the shutdown of major mines has even turned spot processing fees negative, reflecting an extremely tight supply of copper concentrate.