Canada Copper Mine Expansion Approved, LME Copper and SHFE Copper Extended Gains Overnight [SMM Copper Morning Meeting Minutes]

Thursday, February 26, 2026
Futures: LME copper opened at $13,299/mt overnight. After opening, the price center fluctuated downward, hitting a low of $13,244/mt, then rose to a high of $13,350/mt towards the end of the session, finally closing at $13,349.5/mt, a gain of 1.17%. Trading volume reached 19,000 lots, decreasing by 6,860 lots from the previous trading day; open interest reached 321,000 lots, increasing by 4,315 lots from the previous trading day, with the overall performance mainly characterized by long position increases. The most-traded SHFE copper contract 2604 opened at 102,880 yuan/mt overnight. It hit a high of 103,250 yuan/mt early in the session, then the price center moved downward, probing a bottom at 102,520 yuan/mt, and finally closed at 103,040 yuan/mt, a gain of 0.58%. Trading volume reached 45,000 lots, decreasing by 65,000 lots from the previous trading day; open interest reached 177,000 lots, increasing by 3,546 lots from the previous trading day, with the overall performance mainly characterized by long position increases.
[SMM Copper Morning Conference Minutes] News:
(1) On Tuesday, February 24, Hudbay Minerals received approval from the Government of British Columbia, Canada, to advance a three-phase expansion project at its Copper Mountain mine, extending the mine's operating life until 2040. The Copper Mountain mine is one of the largest copper production sites in Canada. The current open-pit copper mine is expected to be mined until 2033. Hudbay Minerals stated that upon completion of the New Ingerbelle expansion project, the mine's life will be extended by 10 years, extending the service life from 2027 to 2037. Based on current reserves, the extension period is expected to produce approximately 750,000 mt of copper, 900,000 ounces of gold, and 5.5 million ounces of silver. From 2036 to 2040, the mine will begin reprocessing low-grade ore stockpiles and gradually enter the ecological restoration and closure phase.
Spot:
(1) Shanghai: On February 25, SMM's #1 copper cathode spot prices against the front-month 2603 contract were quoted at a discount of 280-80 yuan/mt, with the average discount at 180 yuan/mt, down 430 yuan/mt from the previous trading day; SMM's #1 copper cathode price ranged from 101,690 to 102,440 yuan/mt. In the morning session, the SHFE copper 2603 contract first rose, then fell, and then rose again. The opening price was 101,840 yuan/mt. After opening, the price rose to 102,400 yuan/mt, then dropped slightly to 101,950 yuan/mt, before rising again to a high of 102,550 yuan/mt. It generally fluctuated between 102,300 and 102,500 yuan/mt, closing at 102,380 yuan/mt. The contango spread between nearby months ranged from 390 to 340 yuan/mt. The import profit margin for SHFE front-month copper was between a loss of 470 and 390 yuan/mt.
(2) Guangdong: Today, Guangdong's #1 copper cathode spot prices against the front-month contract were at a discount of 320-120 yuan/mt, with the average discount at 220 yuan/mt, down 70 yuan/mt from yesterday; SX-EW copper was quoted at a discount of 400-360 yuan/mt, with the average discount at 380 yuan/mt, down 20 yuan/mt from the previous trading day. The average price for Guangdong's #1 copper cathode was 101,925 yuan/mt, up 1,000 yuan/mt from the previous trading day. The average price for SX-EW copper was 101,765 yuan/mt, up 1,050 yuan/mt from the previous trading day. Overall, increased downstream production resumptions led to slightly higher demand, spot premiums followed higher, and overall trading improved slightly compared to yesterday.
(3) Imported copper: On February 25, 2026, warrant prices were $45-57/mt, QP March, with the average price down $2/mt from the previous trading day; B/L prices were $42-54/mt, QP March, with the average price down $1/mt from the previous trading day; EQ copper (CIF B/L) was $15-23/mt, QP March, with the average price down $1/mt from the previous trading day. Quotations referred to cargoes arriving in late February and early March.
(4) Secondary copper: At 11:30 on February 25, the futures closing price was 102,380 yuan/mt, up 680 yuan/mt from the previous trading day; the average spot premiums/discounts were -180 yuan/mt, down 180 yuan/mt from the previous trading day. Today, copper scrap prices rose 300 yuan/mt MoM; Guangdong bare bright copper prices were 90,000-90,200 yuan/mt, up 300 yuan/mt from the previous trading day. The price difference between copper cathode and copper scrap was 3,189 yuan/mt, down 80 yuan/mt MoM. The price difference between copper cathode rod and secondary copper rod was 1,515 yuan/mt. According to the SMM survey, secondary copper rods began arriving gradually, but as equipment furnace heating requires two days, secondary copper rod enterprises indicated that the earliest finished products would be available by March 1. Current sales are all from pre-holiday inventory.
Prices: On the macro front, market sentiment improved due to a lack of clarity in US trade policy, benefiting copper prices. Additionally, tensions from US military buildup ahead of the next round of US-Iran talks, combined with turmoil in Mexico, supported precious metals like gold and silver, also favoring copper prices. On the fundamentals side, supply side, imported cargoes continued to arrive, coupled with the ongoing outflow of unmatched delivery warrants, leading to generally loose market supply; demand side, as downstream sectors gradually resumed production, purchasing sentiment showed marginal improvement. Overall, copper prices were expected to hold up well today.
[The information provided is for reference only. This article does not constitute direct investment research advice. Clients should make decisions cautiously and not use this to replace independent judgment. Any decisions made by clients are unrelated to SMM.]