Prolonged Winter Storm Triggers Flooding in Chile; Major Northern Copper Mines Remain Largely Unaffected

Data released by LME showed that on July 21, copper inventories stood at 284,175 mt, down 6,750 mt from the previous period, while cancelled warrants reached 177,025 mt, with the proportion rising to 62.29%. US tariffs remain unresolved, and the current LC nearby price spread has widened again to above $400/mt, while the far-end spread has widened to $700-900/mt. China's social inventory of copper cathode has fallen to a low level, and recently the CIF China spot copper cathode premium has continued to surge. The ratio of cancelled warrants in US and Asian warehouses has been rising continuously.

Barrick Mining will invest C$20.88 million (US$14.8 million) in Canadian explorer Kingfisher Metals through a non-brokered private placement, acquiring an initial 9.9% equity stake that could increase to 14.1% if all warrants are exercised. Barrick will subscribe for 15.47 million units at C$1.35 per unit, with each unit consisting of one common share and one-half warrant. At least 80% of the proceeds will be used to advance exploration and development at Kingfisher's HWY 37 copper-gold project in British Columbia's Golden Triangle, with the remaining funds allocated to working capital and general corporate purposes. Following the financing, Kingfisher expects to hold approximately C$47 million in cash to accelerate exploration at its Hank porphyry discovery and across its broader land package. Barrick said the investment is strategic and that it may adjust its ownership position depending on market conditions.

[SMM Analysis: Copper Prices Remain Elevated, but Why Has Overseas Copper Scrap Supply Yet to Increase Significantly?] Despite elevated copper prices, overseas copper scrap supply remains tight. Earlier inventories were largely released from Q4 2025 to Q2 2026, while new scrap generation is slow. High funding costs, stronger local absorption and US-Iran-related shipping delays have further limited tradable supply, supporting payabilities.