Glencore Plc, a global commodities giant, is in discussions to sell its copper business in the Philippines as the copper smelting industry grapples with the lowest processing fees on record. The company is reportedly negotiating with at least one domestic buyer for its Philippine-based copper business, the Philippine Associated Smelting and Refining Corp. (Pasar), although no deal has yet been finalized.

Media sources cited that the negotiations are still in progress. The potential sale of Pasar marks a significant move by Glencore, which has owned the copper smelting facility since acquiring it in 1999. Over the years, Pasar has become a key asset for the company, serving as a crucial outlet for processing copper concentrates from various Pacific producers, including those from Australia and Indonesia, as well as distressed cargoes on route from South America to China.

Pasar has long been an important player in the global copper market, with a smelting capacity of approximately 1.2 million tons of copper concentrate per year, producing around 200,000 tons of copper cathodes annually, which are used in a variety of industries, including electronics and energy storage. However, the current market dynamics, including reduced processing fees and growing competition in the smelting sector, have put pressure on the profitability of such operations.

The timing of the potential sale comes as the global smelting industry faces substantial challenges. Annual processing fees for smelters, which are the fees charged to miners to process copper concentrates into refined metal, have plummeted to historic lows in 2025 supply contracts. This decline is largely due to an oversupply of smelting capacity worldwide, coinciding with production setbacks at major copper mines. As a result, smelters are competing fiercely to secure copper concentrates, leading to a drop in the prices they can charge miners for processing the ores.

Glencore’s decision to consider selling its Philippine copper business comes as the company evaluates its portfolio in light of changing market conditions. The smelting business has historically been an integral part of Glencore’s copper trading operations, but with global smelting fees at historically low levels and increased competition, the company may be looking to adjust its strategy and focus on more profitable areas.

If the sale is completed, it would mark another step in the company’s ongoing strategy of streamlining its operations, amid a volatile commodities market and increasing scrutiny over the environmental impacts of mining and processing operations.

ChemAnalyst reached out to Glencore, but a spokesperson declined to comment on the matter.