Major Copper Smelters to Slash Output as Supply Crunch Looms

Global copper smelters are being forced to cut production significantly due to a worsening shortage of copper concentrate supply.

South Korean smelter LS Metals and Materials announced plans to reduce output by 40,000 metric tons this year, representing over 5% of its 680,000-ton annual capacity. The cutbacks come after supply disruptions from the Cobre Panama mine closure and Indonesia’s new concentrate export ban.

Korea relied on Indonesia for 19% of its 2.2 million tons of imported copper concentrate in 2023, with another 5.5% coming from Panama according to trade data. As spot treatment and refining charges plummet to historic lows, maintaining prior production levels has become untenable for many smelters.

Leading Chinese operators are also targeting 5-10% production cuts amid the supply crunch and negative margins, with treatment charges recently assessed at just minus $70 per ton and 7 cents per pound by pricing agency Platts. 

The cuts exacerbate a tightening that has propelled copper prices close to $10,000 per ton, a two-year peak, as shortages emerge. Analysts cite over 1 million tons of lost mine supply, coupled with rebounding manufacturing demand and rising usage in electric vehicles and new technologies.

Piotr Ortonowski of Benchmark Mineral Intelligence says that, “The long-term energy transition demand story against underinvested new mine supply remains intact.” While a correction from recent frenzied buying is possible according to one trader, industry sources expect visible stock drawdowns soon, maintaining upward price pressure.

For fund managers like Jay Tatum of Valent Asset, copper’s scarcity marks a shift “from an investment story to one where promises are starting to be delivered” as rising intensity clashes with supply side challenges.


Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

What Happens If Silver Finally Breaks $50? | Gary Thompson – Silver47

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Zambia Courts Global Carmakers for Local EV Production

Zambia is aggressively courting international automakers to establish electric vehicle component manufacturing plants near its...

Monday, July 7, 2025, 02:57:00 PM

Max Resource Expands Conejo Zone To 3.7 Kilometres

Max Resource Corp (TSXV: MXR) this morning reported further assay results from the ongoing exploration...

Wednesday, November 3, 2021, 07:43:04 AM

Trump Copper Tariff Announcement Sends Prices to Record Highs

Copper prices exploded to historic levels Tuesday after President Donald Trump declared during a White...

Wednesday, July 9, 2025, 10:38:00 AM

The Next Explosive Move After Gold | Michael Williams – Aftermath Silver

In this interview, Michael Williams, Chairman and Director of Aftermath Silver Ltd. (TSXV: AAG), discusses...

Friday, February 21, 2025, 03:19:00 PM

Core Assets Corp: Advancing A BC-Based CRD Copper Project

Core Assets Corp. (CSE: CC) is a Vancouver-based junior mineral exploration company focused on exploring...

Saturday, September 3, 2022, 05:05:00 PM