Workers at Glencore’s Townsville copper refinery in Queensland are planning a strike after nearly a year of unsuccessful wage negotiations. The industrial action could disrupt refinery operations and affect copper supply chains. Analysts say labor disputes add further uncertainty to the global copper market.

SMM Morning Brief: Overnight, LME copper opened at $13,104.5/mt, then its center moved downward to a low of $13,003.5/mt. It then fluctuated upward, hitting a high of $13,096.5/mt near the close, and finally closed at $12,919/mt, up 1.37%. Trading volume reached 22,000 lots, down 9,254 lots from the previous trading day; open interest stood at 304,000 lots, up 1,035 lots from the previous trading day, mainly reflecting long position buildup overall. Overnight, the most-traded SHFE copper 2604 contract opened at 101,430 yuan/mt. After dipping to 101,200 yuan/mt in early trading, it hovered at highs, hitting a high of 101,930 yuan/mt near the close, and finally closed at 101,860 yuan/mt, up 0.7%. Trading volume reached 28,000 lots, down 88,000 lots from the previous trading day; open interest stood at 193,000 lots, down 1,780 lots from the previous trading day, mainly reflecting short position reduction overall.

Strong industrial demand and supply constraints are driving both inventory buildup and structural tightness in the copper market.

Global copper market trends for 2026 reflect structural demand shifts, with strong demand from digital infrastructure and energy transition sectors boosting the strategic importance of recycled copper and other secondary feedstock.

According to a report from Mining.com, SolGold, a company primarily engaged in exploration and development in Ecuador, announced that it would voluntarily delist from the Toronto Stock Exchange starting June 18. The miner will continue to be listed on the London Stock Exchange and is also considering a secondary listing on the Australian Securities Exchange (ASX). SolGold, founded in Australia and currently headquartered in London, recently appointed Dan Vujcic as its new CEO. The former investment banker at Morgan Stanley and Citigroup, and most recently the CFO of MAC Copper, stated in an interview earlier this year that the ASX was a "natural home" for the company's copper-gold assets. The company is backed by mining giants including BHP and Newmont. It is currently advancing the development of its Cascabel copper-gold project in northern Ecuador. The project is expected to commence development as early as 2028, three to four years ahead of the previous schedule. The latest strategy involves open-pit development initially, followed by a transition to underground mining. SolGold believes that the scale of Cascabel positions it as a multi-generational asset, capable of ranking among the top 20 copper-gold mines in South America. Strategic Adjustments Accelerating the development plan is part of a broader restructuring by the company, which includes establishing a subsidiary to hold its exploration assets. The company claims to hold over 89 licenses within a high-potential copper-gold target area spanning 3,000 square kilometers. This move comes at a time when the global copper market is tightening, driven by growing demand due to copper's critical role in electrification and the scarcity of new discoveries. SolGold hopes that this restructuring and accelerated development will garner greater investor support, especially amid geopolitical instability and tariff fluctuations affecting global supply chains.

[What's going on? It is rumored that Glencore has purchased a large amount of Russian copper from the LME, with the destination possibly being China] ① There are signs that Glencore may have been buying Russian copper from the London Metal Exchange (LME) recently and plans to ship it to China; ② This move appears to be highlighting that the global copper market is still facing a tight supply situation after the US "siphoned off" metals such as gold and copper earlier this year.

There are signs indicating that Glencore may have been buying Russian copper on the London Metal Exchange (LME) recently and plans to ship it to China. This move may be highlighting the ongoing tight supply situation in the global copper market, following the US's earlier "siphoning" of metals like gold and copper earlier this year.

[ICSG: Global Copper Market Saw a Supply Surplus of 17,000 mt in March, with a 289,000 mt Surplus in the First Three Months of the Year] On May 27 (Tuesday), the International Copper Study Group (ICSG) stated in its latest monthly report that the global copper cathode market experienced a supply surplus of 17,000 mt in March, following a surplus of 180,000 mt in February. The ICSG reported that in the first three months of this year, the market saw a supply surplus of 289,000 mt, compared to a surplus of 268,000 mt during the same period last year.

On May 27 (Tuesday), the International Copper Study Group (ICSG) stated in its latest monthly report that the global copper cathode market experienced a supply surplus of 17,000 mt in March, compared to a surplus of 180,000 mt in February. ICSG reported that in the first three months of this year, the market had a supply surplus of 289,000 mt, compared to a surplus of 268,000 mt in the same period last year. Global copper cathode production in March was 2.43 million mt, with consumption at 2.41 million mt. ICSG stated that after adjusting for inventory changes in China's bonded warehouses, the supply surplus in March was 38,000 mt, compared to a surplus of 195,000 mt in February.

According to SMM, the latest report released by the World Bureau of Metal Statistics (WBMS) showed that in March 2025, global copper cathode production reached 2.5135 million mt, with consumption at 2.493 million mt, resulting in a supply surplus of 20,500 mt. From January to March 2025, global copper cathode production amounted to 7.2832 million mt, with consumption at 7.0125 million mt, leading to a supply surplus of 270,800 mt. In March 2025, global copper concentrates production stood at 1.5392 million mt. From January to March 2025, global copper concentrates production totaled 4.5217 million mt.