JIANGXI COPPER (00358) declined nearly 4% in afternoon trading, with shares down 3.11% to HK$36.8 by the time of writing, recording a turnover of HK$5.58 million. The drop follows reports that around December 19, Chilean mining company Antofagasta and a major Chinese copper smelter agreed to set the 2026 copper concentrate processing and refining fee benchmark at $0 per ton and 0 cents per pound, significantly lower than the 2025 rates of $21.25 per ton and 2.125 cents per pound. Guosen Securities noted that the zero processing fee serves as a strong warning signal, potentially prompting regulatory measures to curb overcapacity in the copper smelting sector, which could improve the industry's long-term outlook. Citigroup released a research report forecasting a year-on-year decline in JIANGXI COPPER's copper smelting margins next year, with long-term smelting and refining operations also facing downward pressure. However, the bank expects higher prices for copper, gold, and sulfuric acid to drive an overall improvement in the company's gross margins. Citigroup raised its target price for JIANGXI COPPER's H-shares from HK$27.9 to HK$39.8, maintaining a "Buy" rating.