South Korean Battery Copper Foil Makers See Q2 Rebound, Boosted by Global Demand Recovery

[SMM Shanghai Spot Copper] Looking ahead to next week, spot premiums in the current Shanghai market have risen to near the year’s highs. As premiums have climbed rapidly for several consecutive sessions, downstream acceptance of high-priced cargo has declined somewhat, and the momentum for spot premiums to rise further is expected to weaken. In terms of supply, according to SMM, some non-registered copper that previously had delayed warehousing due to port congestion is expected to arrive at ports gradually next week, providing some replenishment to available cargo in the Shanghai market. Meanwhile, after the spot price spread between Shanghai and surrounding regions widened, the cross-regional arbitrage window has opened, and some out-of-town cargo is in a position to be transferred to Shanghai, which may marginally ease the tight supply pattern going forward. However, after entering September, a new round of procurement cycles is about to begin. Some downstream players and traders have restocking needs at the beginning of the month. Coupled with the fact that Shanghai market inventory and available cargo remain relatively tight, this provides support to spot premiums on the downside. Overall, with stronger expectations for replenishment from imports and cross-regional cargo, high premiums suppressing chase-buying demand, and early-month procurement demand about to be released, Shanghai spot copper prices against the 2609 contract are expected to remain at elevated premiums next week. There is limited room for the premium center to continue rising sharply, and a pull back slightly cannot be ruled out; overall, the market may consolidate at highs.

Sumitomo Corporation of Japan announced on August 28 that, through a special purpose vehicle (SPV) established on a 50:50 basis with G Mining Group, it will participate in the Dos Amigos copper-gold project in Chile. The SPV subscribed for approximately CAD 48 million in private placement shares of Canada’s Tintina Mines, with Sumitomo contributing about CAD 24 million. Upon completion of the transaction, the SPV will hold about a 25% equity stake in Tintina, giving Sumitomo an effective economic interest of approximately 12.5% in the project. This round of financing will be used to acquire the remaining interest in Dos Amigos and to advance drilling, feasibility studies, environmental assessments, and permitting work in preparation for the final investment decision (FID). The project is located in Chile’s Atacama Region at an elevation of about 800 meters, near highways, the power grid, and coastal logistics facilities. The 2026 PEA showed measured and indicated resources of approximately 101 million mt and inferred resources of approximately 256 million mt. The project is expected to adopt open-pit mining and flotation processing, with ore throughput of 35,000 mt per day and a mine life of about 25 years, and is expected to produce an average of 37,000 mt of copper and 57,000 ounces of gold per year. The project is currently still in the study and permitting stage and has not yet generated incremental copper supply.