SMM Copper Morning Comment

Published: Dec 27, 2023 10:00

Save

The LME was closed due to the Christmas Day holidays. The most active SHFE 2402 copper contract prices opened at 69230 yuan/mt and finished at 69020 yuan/mt last evening, down 0.25%, with the low-end of 68970 yuan/mt and the high-end of 69400 yuan/mt. Trading volume was 30,000 lots, and open interest stood at 154,000 lots. On the macro front, there was a lack of relevant data during the overseas Christmas holidays, and Shanghai copper fell against the background of a light market in the last week of the year. In terms of fundamentals, from the supply side, the supply of goods that can be circulated in the market in East China has begun to decrease. Faced with the large discounts, many sellers may choose to directly deliver to warehouses in the future, which will further reduce the supply of goods in the market. However, The current overall supply is not tight. In terms of consumption, the price of copper is running at a high level, and the large discounts did not significantly increased the enthusiasm of downstream purchasing. Near the end of the year, buyers purchased as required. If copper prices continue to run at a high level, demand will continue to be under pressure. Copper prices will lack impetus to rise due to weak demand.

Market review

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

8 hours ago

ACG’s Gediktepe Sulphide Expansion Produces First Copper and Zinc Concentrates; Full Production Targeted by End-2026

ACG Metals announced on September 1 that its Gediktepe mine in Türkiye produced its first copper concentrate on August 31, marking the start of the ramp-up phase. The company will progressively increase throughput and optimise plant performance, targeting full production by the end of 2026. Gediktepe’s steady-state annual production target is 20,000–25,000 tonnes of copper equivalent. The full announcement also confirmed that the mine produced its first zinc concentrate in August 2026, although the specific date and volumes were not disclosed. SMM estimates the mine’s zinc-in-concentrate production at approximately 10,000–15,000 tonnes of contained zinc in 2026.

8 hours ago

[ SMM Analysis ] A Visual Guide to the 2026 Semi-Annual Reports of 19 Copper Smelters

8 hours ago

10 hours ago

MMG Places US$64 Million Equipment Order to Support Khoemacau Expansion in Botswana

Epiroc has secured an approximately SEK610 million (US$64 million) order from MMG Limited and its mining contractors, China Huaye and 23MCC, for underground mining equipment to support the expansion of the Khoemacau Copper Mine in Botswana. The order includes face drilling rigs, production drilling rigs, cable-bolting rigs, loaders and underground mine trucks, together with remote-control systems, spare parts, training and on-site technical support. The equipment will support MMG’s ongoing Khoemacau expansion, which is designed to increase annual production capacity from approximately 60,000 tonnes to 130,000 tonnes of copper metal in concentrate. The project includes construction of a new 4.5 Mt/y processing plant, which will lift total milling capacity to more than 8 Mt/y, alongside development of Zone 5 North, Mango and Zeta North-East. First copper concentrate from the expansion is expected in H1 2028. Epiroc said delivery of the new underground fleet will begin in Q4 2026 and is expected to be completed by Q2 2028, broadly aligning with the expansion schedule. The ordered fleet includes Boomer face drilling rigs, Simba production drilling rigs, Cabletec cable-bolting rigs, Scooptram loaders and Minetruck underground trucks, with several units equipped for automation and remote-control operation. The equipment order represents another execution milestone for the already-approved Khoemacau expansion, rather than a new production target. With procurement progressing and equipment deliveries scheduled through Q2 2028, the project continues to advance toward MMG’s planned increase in copper-in-concentrate capacity to 130,000 tonnes per year. The expansion represents a significant planned increase in Khoemacau’s copper production capacity in Botswana’s Kalahari Copper Belt.

10 hours ago