SMM Morning Meeting Summary: Overnight, LME copper opened at $13,317/mt, moved sideways after the opening before dipping to a low of $13,168/mt, then the center rose to a high of $13,348/mt, and finally closed at $13,259/mt, down 0.68%, with trading volume at 18,000 lots, a decrease of 809 lots from the previous trading day; open interest stood at 316,000 lots, a decrease of 4,795 lots from the previous trading day, with the overall movement mainly characterized by bulls reducing positions. Overnight, the most-traded SHFE copper 2604 contract opened at 102,670 yuan/mt, fluctuated downward after the opening to a low of 101,780 yuan/mt, then the center rose to a high of 102,880 yuan/mt, and finally closed at 102,550 yuan/mt, down 0.15%, with trading volume at 55,000 lots, a decrease of 51,000 lots from the previous trading day; open interest stood at 186,000 lots, an increase of 1,437 lots from the previous trading day, with the overall movement mainly characterized by bears adding positions.

Teck Resources warned that rising diesel and freight costs could increase spending at its Chilean copper mining operations during Q2, as global supply tightened. The Canadian mining company said its Chilean operations relied on imported diesel and faced higher fuel and transportation costs due to supply disruptions related to the Strait of Hormuz, although no severe shortages were expected. "We expect freight costs to continue rising in Q2 2026, with explosives costs also increasing accordingly. We will continue to closely monitor developments, such as potential product export bans by major supplying countries, which could further disrupt the market," the company said. The warning highlighted broader supply chain pressures and the risk that government intervention could tighten metals markets, potentially prompting enterprises and strategic stockpiling of copper and zinc as demand strengthened. Alongside the cost warning, the company reported strong Q1 results that exceeded analyst expectations. This was primarily driven by higher copper prices, record sales, and increased production at its flagship mine, Quebrada Blanca (QB), in northern Chile. Production at the newly expanded mine grew 31.2% to 55,500 mt, compared with just 42,300 mt a year earlier when output was constrained by prolonged shutdowns. Despite a maintenance shutdown at the start of the year, performance remained on par with the previous quarter. Total copper production in Q1 reached 140,000 mt, compared with 106,100 mt in the same period last year. The company still plans to produce 455,000 to 530,000 mt in 2026 and 505,000 to 580,000 mt in 2027, while 2025 production is expected to be 453,500 mt, with the QB project expected to contribute 200,000 to 235,000 mt next year. Driven by growing power demand from data centers, artificial intelligence, and national defense, as well as expanding investment in power grid and electronic infrastructure, global copper demand is expected to surge 50% by 2040, benefiting Teck and its peers. Concentrates zinc production fell to 120,300 mt, a decrease of 17,000 mt from the same period last year. (Wenhua Consolidated)

[Frequent Supply Disruptions; Imported TCs Continued to Decline]: Weekly data showed that the average weekly TC for SMM Zn50 domestic remained flat at 1,550 yuan/mt in metal content, while the SMM Imported Zinc Concentrate Index fell by $8.37/dmt MoM to $15.38/dmt...

[2026 Zinc Concentrates Benchmark Released] It was reported that the market heard this week that Teck Resources, a Canadian mining company, and a South Korean zinc company agreed on a 2026 benchmark processing fee for imported zinc concentrates of $85/dmt, a slight rebound from $80/dmt in 2025, while raising charges for silver and germanium after prices for the two metals surged.

[SMM Analysis:Overview of Q4 Copper Production of the Top 20 Global Mining Companies in 2025] According to SMM statistics, copper production by the world's top 20 mining companies in the fourth quarter of 2025 stood at 3,526 kt, a 2.1% increase quarter-on-quarter but a 10.5% decrease year-on-year.

According to a report by Bloomberg on Mining.com, the US Department of Defense (DoD) invested $18 million in Canada's 5N Plus Inc. to help the company expand its germanium metal refining capacity. Germanium is used in night vision systems and other application fields. Mike Cadenazzi, a Pentagon official, stated in an announcement regarding the deal, "Our warfighters rely on next-generation optical technologies for surveillance, reconnaissance, and targeting, and germanium is a critical material for manufacturing these devices." The US has been seeking secure supplies of critical minerals to reduce risks and external dependencies. Since 2024, the US has invested over $60 million in Canadian small and medium-sized enterprises producing these materials, including Nano One Materials Corp, which produces LFP battery cathode materials, and other enterprises producing graphite and tungsten. Since 2020, the DoD has been collaborating with the company to improve semiconductor production processes needed for space programs and to produce germanium wafers for solar cells used in defense and commercial satellites. Over the past three years, the stock price of Montreal-based 5N Plus has increased by more than 650%. In November last year, management discussed several demand trends with analysts, including accelerated developments in solar energy and artificial intelligence, which are expected to drive demand growth this year. The company, which began supplying materials for medical imaging in 2000, currently has a market capitalization exceeding C$2 billion ($1.5 billion). 5N Plus sources its germanium from Canada's Teck Resources Ltd., Europe's Umicore SA and Nyrstar NV, as well as scrap recyclers in the US. These materials are used to produce germanium wafers at the company's facility in St. George, Utah. "This funding will enable 5N Plus to significantly increase its germanium metal refining capacity and support its plan to procure germanium from underutilized and previously untapped domestic sources," said Gervais Jacques, the company's CEO. In September last year, Jacques revealed to Montreal's La Presse that the company plans to make a medium-sized acquisition in the US, followed by a smaller acquisition, to expand its manufacturing capacity.

SMM Morning Meeting Summary: On Friday evening, LME copper opened at $9,566/mt, dipping to a low of $9,532/mt shortly after the opening bell. It then fluctuated upward throughout the session, reaching a high of $9,654.5/mt near the close, and ultimately closed at $9,647.5/mt, marking a decline of 0.44%. Trading volume reached 18,000 lots, and open interest stood at 291,000 lots. On Friday evening, the most-traded SHFE copper 2507 contract opened at 77,910 yuan/mt, dipping to a low of 77,810 yuan/mt shortly after the opening bell. It then fluctuated upward throughout the session, reaching a high of 78,480 yuan/mt near the close, before pulling back slightly to close at 78,350 yuan/mt, marking a decline of 0.06%. Trading volume reached 30,000 lots, and open interest stood at 192,000 lots.

On June 13 (Friday), Condor Resources announced that its Cobreorco copper project in the Andahuaylas province of central Peru had passed a "significant" permitting milestone after its environmental impact statement was approved, bringing the project closer to the drilling phase. The permitting process was carried out by Teck Resources, which entered the project through an option and joint venture agreement with Condor at the end of 2023. Under the agreement, Teck can acquire a 55% interest in the Cobreorco copper project by investing $4 million in exploration and paying an additional $500,000 in cash within three years of the permit being issued. After exercising this option, Teck can further increase its stake in the copper project to 75% by spending an additional $6 million on exploration and paying an additional $600,000 in cash. Chris Buncic, CEO of Condor, stated, "We are delighted to have reached this significant milestone with Teck. Projects of this scale and quality are extremely rare, and we believe our partnership is just beginning, which will be an exciting journey." The approval of the environmental impact report by Peru's Ministry of Energy and Mines is the first step in obtaining the surface drilling permit for the project. Discussions with two local communities are still ongoing to complete this process.

On June 12th, Bloomberg reported that Teck Resources and Sumitomo Metal Mining are locked in a dispute over treatment and refining charges (TC/RCs) in a major copper concentrate supply agreement. The disagreement, centered on shipments from Teck’s Quebrada Blanca and Highland Valley mines, has prompted the appointment of lawyers to select an industry expert as an independent referee. The clash highlights cracks in the traditional benchmark pricing system, after Antofagasta’s 2025 deal with Chinese smelters set TC/RCs at $21.25/2.125 cents, far below historical norms. Some Japanese buyers, including Sumitomo, have resisted adopting this benchmark amid sharply falling spot TC/RCs, which have recently turned negative. The situation underscores growing tension between well-funded Chinese smelters and financially pressured Western peers, with some smelters in the Philippines and Namibia already suspending operations.

[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.