Copper prices fell consecutively, curbing copper scrap traders' shipments [SMM Secondary Copper Daily Review]

Vale Base Metals confirmed it is proceeding with the Coarse Particle Flotation project at its Salobo copper complex in Brazil, lifting annual ore processing capacity by 6 million tonnes to 42 million tonnes and adding up to about 30,000 tonnes of copper in concentrate per year, with roughly 15,000 ounces of gold as by-product. Start-up is accelerated to the first half of 2028, about one year ahead of plan. Capex was optimised to about US$215 million from US$225-275 million, with Wheaton Precious Metals funding US$40 million, leaving VBM net spend near US$175 million and project IRR above 50%. It is the second step in VBM's low-capital Carajás brownfield copper pipeline.

Lundin Mining said on August 19 that a second severe winter storm in Chile’s Atacama region has further disrupted recovery efforts at its Caserones copper mine. The storm, which began on August 13, brought heavy rainfall, unusually heavy snowfall and strong winds. Following an initial power outage from July 18 to July 30, Caserones suffered another outage on August 14 after a previously damaged transmission tower was hit again. Full power is expected to be restored by the end of the week, followed by a gradual ramp-up of operations. Lundin lowered Caserones’ 2026 copper production guidance from 130,000–140,000 tonnes to 120,000–130,000 tonnes and raised its cash cost guidance to $2.15–2.35/lb. Candelaria is still expected to meet its full-year target, while Lundin’s consolidated copper production guidance has been revised to 300,000–325,000 tonnes.

On August 19, LME copper showed a straight-line decline after the close of SHFE copper. In early trading, copper prices consolidated around $13,960/mt. During the session, prices briefly climbed above $13,980/mt before quickly pulling back and falling below $13,900/mt, with the intraday low approaching $13,880/mt. On the inventory front, on August 18, LME copper inventories rose to 235,975 mt, an increase of 12,425 mt from the previous trading day, including 17,000 mt of inflows and 4,575 mt of outflows. Meanwhile, cancelled copper warrants fell to 77,225 mt, a decrease of 18,650 mt from the previous day, and the ratio of cancelled warrants pulled back to 32.73%. The significant increase in LME copper inventories and the simultaneous decline in cancelled warrants indicated that deliverable supply on the exchange had increased somewhat, putting some pressure on high copper prices. Intraday, LME copper came under pressure near the $14,000/mt mark and pulled back quickly. In the near term, the market continues to focus on inventory changes and funding sentiment at elevated levels.