Relief for Baltic Dry Index after weeks of losses

SMM Morning Meeting Minutes: Overnight, LME copper opened at $14,122.5/mt, drifted lower in early trading to touch a low of $14,069/mt, then the price center gradually moved up to test $14,177/mt, and subsequently drifted lower again to close at $14,120/mt, up 0.7%, with trading volume of 15,000 lots and open interest of 259,000 lots, an increase of 1,164 lots from the previous session, represented by bulls adding positions. Overnight, the most-traded SHFE copper 2609 contract opened at 107,850 yuan/mt, drifted lower in early trading to test 107,450 yuan/mt, then the price center moved up sharply to touch 108,060 yuan/mt, and finally closed at 107,790 yuan/mt, up 0.16%, with trading volume of 27,400 lots and open interest of 212,000 lots, a decrease of 2,287 lots from the previous session, represented by bears reducing positions.

According to foreign media reports, Resolution Copper has awarded approximately $110 million in drilling and underground development contracts as work advances at its proposed copper mine in Arizona, one of the world’s largest undeveloped copper deposits. Major Drilling America will undertake deep-hole directional diamond core drilling over the next two-and-a-half years, including drilling from the surface and from approximately 6,800 feet underground. Four large surface drilling rigs are planned for the programme, with two already on site and another two expected by the end of 2026. Redpath USA Corporation will undertake the first phase of underground development, including converting two existing shafts, each approximately 7,000 feet deep, for development activities. The contractor will also install underground infrastructure, construct a mine station at around 6,800 feet below surface and develop approximately 1,500 feet of new tunnels and supporting facilities. The contracts form part of an early phase of Resolution Copper’s planned $500 million investment programme, following completion of key environmental review and land-exchange processes earlier this year. The project is jointly owned by Rio Tinto with a 55% stake and BHP with 45%. If developed, Resolution Copper is expected to have the capacity to meet up to a quarter of annual US copper demand. However, a final investment decision remains subject to further data collection, permitting and partner approvals. From a copper-market perspective, the latest contract awards mark another step in advancing a potentially significant source of long-term US mine supply. While commercial production remains dependent on an eventual investment decision and further development, progress at Resolution is increasingly relevant as the US seeks to strengthen domestic copper supply amid rising requirements from power infrastructure, manufacturing and electrification.