- Aurubis invests €115 million in cleaner copper production
- Trafigura backs Australian copper projects with $350 million
LME copper prices remained largely range-bound this week, hovering within the $13,500-13,700/t range amid a tug-of-war between macroeconomic uncertainty and tightening exchange inventories. The market continued to focus on the impending U.S. decision on refined copper import tariffs, which is expected following the Commerce Secretary’s review due at the end of June. LME copper inventories fell 2.6% w-o-w to 352,150 t from 361,600 t, reinforcing concerns over tightening supply and supporting prices near the $13,500/t level.
A positive tariff decision could trigger further inflows of copper into U.S. warehouses, widen the COMEX-LME premium, and tighten availability in other regions. Conversely, any decision to abandon the tariff proposal could reverse recent trade flows, ease supply pressures outside the U.S., and weigh on global copper prices.
Supply-side concerns provided underlying support to prices during the week. Protesters temporarily blockaded Rio Tinto’s Oyu Tolgoi mine in Mongolia, disrupting concentrate shipments to China, while U.S. authorities imposed restrictions on copper imports from Serbia’s Zijin Mining operations.
Meanwhile, exchange inventories continued to tighten, with LME copper stocks declining to their lowest level in more than a month, providing additional support and preventing prices from falling below the $13,500/t mark despite broader macroeconomic headwinds.
Global updates
Trafigura Strengthens Long-Term Copper Supply Pipeline
Trafigura has strengthened its partnership with Australia’s Develop Global through a $350 million financing facility and expanded offtake agreements, adding 187,500 dmt of concentrates from the Woodlawn copper-zinc-lead mine to its supply portfolio. The deal also supports the development of the Sulphur Springs project, which is expected to produce around 30,000 tpa of copper by 2028.
Aurubis Invests €115 Million in Emissions Reduction
Germany-based Aurubis AG has inaugurated the expansion of its Reducing Diffuse Emissions (RDE) system at its Hamburg copper smelter, following a total investment of €115 million, including €30 million for the latest upgrade. The enhanced system is capable of reducing diffuse emissions from primary copper production by around 80%, compared with 40% previously, making it one of the world’s most powerful exhaust and filtration systems.
India’s update
India’s copper scrap market remained cautiously stable this week, with buyers continuing need-based procurement amid elevated prices and fluctuating imported scrap offers. Seasonal restocking ahead of the monsoon supported buying activity, as traders and consumers sought to secure material before potential disruptions to port operations and inland transportation.
Copper cathode market witnessed improved sentiment this week as higher LME copper prices lifted domestic offers and encouraged buyers to cover near-term requirements.
Outlook
Copper’s outlook remains constructive, supported by rising demand from AI data centres. Hyperscale data centres can consume up to 50,000 t of copper per facility. Major producers such as Ero Copper and Southern Copper have benefited from this trend, with Ero Copper reporting first-quarter revenue of $263.2 million and Southern Copper posting a 36% increase in quarterly sales to $4.25 billion. Rising investments in digital infrastructure and electrification projects are expected to further support copper demand and maintain bullish sentiment across the global copper market.
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