Rate hike expectations intensify, but expectations of easing geopolitical tensions remain; copper consolidates at highs [SMM copper morning comment]

KPC has set the August Kuwait Sulphur Price (KSP) at $865/mt FOB, down by $85/mt from the July KSP of $950/mt; QatarEnergy has kept its August Qatar Sulphur Price (QSP) unchanged at $890/mt FOB from July; ADNOC has kept its August official selling price (OSP) for the Indian subcontinent unchanged at $1,000/mt FOB Ruwais from July.

Botswana's Khoemacau copper mine increased copper production in the second quarter of 2026 as improved ore grades offset lower mining volumes, while construction of its major expansion project continued to advance. According to MMG Limited's second-quarter production report, Khoemacau produced 11,423 tonnes of copper in concentrate during the three months ended 30 June, representing a 7% increase from the previous quarter and remaining broadly in line with production achieved in the corresponding period of 2025. Although ore milled declined year-on-year, the operation benefited from improved copper grades of 1.62%, up from 1.59% a year earlier, as mining progressed into higher-grade sections of the Zone 5 orebody. Metallurgical recovery remained stable at 88.2%. MMG said lower ore mined volumes reflected earlier development delays and reduced equipment availability. However, the company expects operational performance to strengthen during the second half of 2026 as new mining equipment is deployed, refurbished fleet units are commissioned, and access to higher-grade mining areas continues. The company maintained its 2026 copper production guidance of 48,000-53,000 tonnes while lowering C1 cash cost guidance to US$1.70-US$2.00/lb, supported by stronger silver prices. Construction of Khoemacau's expansion project also progressed during the quarter. The project is designed to increase annual copper production to 130,000 tonnes of copper in concentrate and more than 4 million ounces of silver, with first concentrate expected in the first half of 2028. Continued progress at Khoemacau reinforces Botswana's position as an emerging copper producer at a time of tightening global supply. The expansion is expected to add meaningful new copper capacity over the medium term, supporting long-term supply growth as demand from electrification, renewable energy and electric vehicle manufacturing continues to accelerate.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 05 Aug , 2026