- Q2 copper concentrate throughput rises 4% y-o-y to 620,000 t
- Firm sulfuric acid prices and scrap availability support margins
German copper smelter and recycler, Aurubis, has raised its FY2025-26 operating earnings before tax (EBT) guidance to $497-614 million from the earlier $439-556 million, supported by improved sulfuric acid revenues, stronger recycling margins, and stable downstream copper demand.
The company reported preliminary operating EBT of $142 million in Q2 FY’26 ended March, up 15% q-o-q from $123 million in Q1. Operating EBITDA increased to $219 million from $192 million in the previous quarter.
Aurubis said higher precious metal prices, improved recycling material processing revenues, and stronger sulfuric acid sales supported earnings during the quarter.
Recycled copper cathode output rose 5% y-o-y to 133,000 t in Q2, while H1 output increased 4% to 266,000 t. Copper concentrate throughput at the company’s primary smelters increased 4% y-o-y to 620,000 t during the quarter, supported by higher throughput at Hamburg and stable operations at Pirdop, Bulgaria.
The company processed around 246,000 t of copper scrap and blister material during H1 FY26, compared with 249,000 t a year earlier. Wire rod output increased 8% y-o-y to 241,000 t in Q2, supported by demand from renewable energy, infrastructure, grid expansion, and data centre sectors.
Margins supported
Aurubis said disruptions in Middle East shipping routes tightened global sulfur supply, lifting sulfuric acid spot prices and improving acid-related earnings contribution during the quarter.
Higher copper prices also encouraged European scrap dealers to release inventories into the market, improving scrap and blister availability and supporting stronger recycling refining charges both q-o-q and y-o-y.
Copper cathode output from the custom smelting and products segment remained largely stable at 150,000 t in Q2.
The company added that near-zero TC/RCs and continued copper concentrate tightness are expected to keep pressure on global smelter margins. However, Aurubis said its long-term contracts and diversified supplier base have ensured concentrate availability well into Q4 of FY2025-26.
Announced utilisation adjustments, particularly in China, are unlikely to fully offset the expected concentrate market deficit this year.
Market outlook firm
Aurubis expects recycling operations and sulfuric acid revenues to remain key earnings contributors through FY’26. However, the company stated that copper scrap availability could remain volatile depending on copper price movements and scrap collection activity across Europe.
Market participants indicated that stable demand from electrification, renewable energy, infrastructure, and grid expansion sectors continues to support refined copper consumption globally despite persistent concentrate tightness.
Aurubis remains confident of securing concentrate supply through long-term contracts and supplier diversification and stated that it is already contractually supplied with concentrates well into the fourth quarter of FY2025-26.
Aurubis CEO Dr. Toralf Haag said the company’s multimetal business model and diversified earnings streams continue to support resilience despite the challenging geopolitical environment.
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