SMM Overview of Recent Copper Ore Supply and Demand in Overseas Markets

The overseas production was relatively stable during the week, and there were no interference from serious negative events. On the production side, SMM understood that the seawater desalination project of Antofagasta's Los Pelambres mine in Chile, which was originally scheduled to be constructed in March this year, will be postponed again; Lundin Mining announced that it has signed a long-term purchase agreement with JX Nippon Mining&Metals Corporation to acquire a 51% stake of SCM Minera Lumina Copper Chile, Nippon Mining&Metals' wholly-owned subsidiary.

Lumina Copper operates the Caserones copper-molybdenum mine in Chile, whosecopper output stood at 120,000 mt in metal content in 2023; Rio Tinto and First Quantum Minerals have agreed to jointly developed the La Granja project in Peru, and the latter acquired a 55% stake in the project for $105 million.

On the demand side, according to foreign media reports, Codelco's Chilean Ventanas smelter will close its only remaining refining link in May-June; according to SMM survey, First Quantum Minerals' Zambian Kansanshi smelter has difficulties in delivering blister copper.