On August 21, the SMM Imported Copper Concentrate Index (weekly) reported -182.14 $/dmt, down 6.77 $/dmt from the previous week's -175.37 $/dmt. The payable indicator for 20% grade domestic trade ore was reported at 98.5%-99.5%.
The spot market was relatively quiet this week, but mine tenders were more active. In spot transactions, a trader sold 10kt of HVC to a smelter at an index minus 26 $/dmt, with loading period from September to October, QP: M+1/M+5; another trader sold 80kt of bundled ore to a smelter at an index minus 22 $/dmt, with loading in Q4, QP: M+1/M+5; a supplier quoted South American clean ore at an index minus 30 $/dmt. On the mine tender side, from the trader channel, a previously tendered 10kt of Mantoverde for September was transacted at -260 $/dmt, QP: M+1/M+4; another 10kt of Las Bambas for October-November had winning bid prices ranging from -256 $/dmt to -257 $/dmt, QP: M+1~M+4; the winning bid result for Escondida for October-November was -250 $/dmt; the winning bid result for Timok for October-November was -190 $/dmt or lower, QP: M+1. Additionally, tenders were ongoing for 10kt of Asmara for September-October, 20kt of Mina Justa for 2027, and 10kt of Mission for August, with results pending. Mission specified CIF to Onahama Port, Saganoseki Port, or Niihama Port, Japan. Currently, index minus quotations were around 20-30 $/dmt. As the imported copper concentrate index fell to a low level, index minus pricing further increased smelters' procurement pressure. Smelters' acceptance of deep minus clearly declined, and they preferred to improve procurement cost controllability through fixed TC. Suppliers continued to mainly quote on an index minus basis, and the price negotiation gap between buyers and sellers persisted. Furthermore, SMM learned that some suppliers had attempted to offer -200 $/dmt or lower, but smelters had low acceptance of the current price, and no transactions were concluded yet. Spot TC is expected to remain under pressure in the near term, but the room for further downside is gradually narrowing.
Canadian miner Lundin Mining announced on August 19 that the Atacama region in Chile experienced a second severe winter storm since August 13, with heavy rainfall at low altitudes and abnormal heavy snow and strong winds at high altitudes. As a result, the Caserones copper mine suffered another power outage on August 14. Inspections showed that power transmission towers damaged during the first storm were further damaged by strong winds and heavy snow, further delaying the mine's full production resumption. The company expects to restore full power supply before this weekend, and then gradually and safely resume production. Affected by the cumulative impact of two rounds of extreme weather, Lundin Mining lowered its 2026 copper production guidance for Caserones from 130,000–140,000 mt Cu to 120,000–130,000 mt Cu.
On August18, MMG announced on the Hong Kong Stock Exchange that a fatal accident occurred at its Las Bambas copper mine in Peru on August18, resulting in2 fatalities (1 company employee and1 contractor) and3 injuries. The accident happened at a clarification pond approximately9 km from the beneficiation plant. Peru's labor inspection agency Sunafil has launched an investigation. Mine operations have been suspended, and a gradual resumption of production is planned to start from August21.
On August18, BHP released its fiscal year2026 results for the period ending June30,2026. In FY2026, BHP's copper production was1.953 million mt, down3% YoY, remaining at approximately2 million mt for the second consecutive fiscal year; the group's copper production guidance for FY2027 is1.65–1.8 million mt.
On August14 local time in Chile, Codelco announced management adjustments for its senior executives and multiple division management levels. Among them, Ricardo Weishaupt will assume the role of General Manager of the Chuquicamata division, effective from August15; the current Mine Manager of the Ministro Hales division, Thomas Gleisner Rivas, will serve as interim General Manager of the division, effective from September1.
On August21,2026, SMM copper concentrate inventories at11 ports were739,100 mt in physical content, down18,300 mt in physical content from August14. The main decreases came from Qinzhou Port and Fangchenggang Port, with decreases of28,000 mt and20,000 mt WoW, respectively; the main increases came from Jinzhou Port and Yantai Port, with increases of41,000 mt and4,700 mt WoW, respectively.
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