Hudbay Minerals announced it will acquire the remaining shares of Arizona Sonoran Copper for $1.48 billion boosting its U.S. copper output capacity to nearly 500,000 tonnes annually as global demand grows.

SMM Morning Meeting Minutes: 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 by the end of the session, finally closing at $13,349.5/mt, up 1.17%. Trading volume reached 19,000 lots, down 6,860 lots from the previous session; open interest stood at 321,000 lots, up 4,315 lots from the previous session, mainly driven by an increase in long positions. The most-traded SHFE copper 2604 contract opened at 102,880 yuan/mt overnight, hitting a high of 103,250 yuan/mt early in the session, then the price center moved downward and hit a bottom at 102,520 yuan/mt, finally closing at 103,040 yuan/mt, up 0.58%. Trading volume reached 45,000 lots, down 65,000 lots from the previous session; open interest stood at 177,000 lots, up 3,546 lots from the previous session, mainly driven by an increase in long positions.

[SMM Analysis: When It Rains, It Pours - Global Copper Concentrates Supply-Demand Balance After the Earthquake at KK Mine] At the end of May, Chinese smelters and Antofagasta commenced mid-year negotiations. In the first round of negotiations this year, miners had already offered a midpoint price of -US$15 to the smelters. This figure was significantly lower than the US$0/dmt that had circulated in the market in late April. According to SMM, many raw material procurement teams from leading smelters in the CSPT group indicated that the negotiations were fraught with difficulties, and it was exceptionally challenging to secure a favorable figure.

[SMM Analysis:When it rains, it pours: Global copper concentrate supply-demand balance results after KK Mine earthquake ] At the end of May, Chinese smelters started mid-year negotiations with Antofagasta. In the first round of negotiations this year, mining companies have offered smelters a quotation with -$15 , which is far lower than the $0 leaked by the market in late April. According to SMM, many raw material procurement teams from leading smelters in the CSPT group stated that this negotiation is extremely difficult, and it is arduous to strive for a favorable figure.

[Increased Offers for Imported Zinc Ore, TCs Continue to Rise]: Zinc concentrate TCs increased MoM during the week. The average weekly SMM Zn50 domestic TC remained flat MoM at 3,600 yuan/mt (metal content). The SMM imported zinc concentrate index rose by $3.85/dmt MoM to $50.35/dmt...

》Check SMM metal quotes, data, and market analysis 》Subscribe to view historical price trends of SMM metal spot cargo On June 6, the SMM Imported Copper Concentrate Index (weekly) was reported at -$43.29/dmt, an increase of $0.27/dmt from the previous -$43.56/dmt. The pricing coefficient for 20% grade domestic trade ore ranged from 93% to 95%. Transaction activities in the copper ore spot market were sluggish during the week, with traders' July cargo supplies not flowing into the spot market in large quantities. During the week, a trader sold 20,000-30,000 mt of packaged clean ore to a smelter at a mid-to-low price of -$40/dmt, with QP as M+1/5 and a loading period in July. The gold and silver Payable were normal. Before the Dragon Boat Festival, the tender results for SPCC were announced, with three traders winning bids for 10,000 mt of SPCC cargo (from Cuajone and Toquepala) at prices of -$90, -$100, and -$105/dmt, with shipments of 10,000 mt each scheduled for July, August, and September. On June 2, Ivanhoe Mines reported that since the company announced the suspension of underground mining operations at the Kakula copper mine on May 20, 2025, management has been advancing the production resumptions at the western and eastern sides of the mine in phases. Based on the current drainage progress, underground mining operations are expected to resume at the western side of the mine later this month, with the area remaining dry. Currently, the mine has ordered four high-capacity pumps and will order and deploy more in the future. The delivery and installation of surface pumps are expected to be completed within 90 days. During this period, the Phase 1 and Phase 2 beneficiation plants at the Kakula mine will continue to operate at approximately 50% capacity utilisation rate, processing ore stockpiled on the surface. The underground mining operations at the Kamoa mine and its associated Phase 3 beneficiation plant have not been affected and will continue to operate normally. Previously, Ivanhoe Mines announced a 2025 copper production target of 520,000-580,000 mt in metal content for Kamoa-Kakula. A mechanical failure occurred at the Carmen de Andacollo copper mine owned by Teck Resources, requiring the mine to shut down the SAG mill for repairs. Production is expected to be interrupted for about a month due to the repairs. Carmen de Andacollo was expected to produce 50,000 mt of copper in metal content in 2025. Hudbay Minerals announced the suspension of production operations at the Snow Lake polymetallic mine due to frequent forest wildfires in Canada. The miner will resume full production operations when conditions permit. Snow Lake was expected to produce 10,000 mt of copper in metal content in 2025. 》Check the SMM metal industry chain database