On May 28, JX Advanced Metals, Mitsubishi Materials (MMC), Mitsui Kinzoku, and Marubeni signed a final agreement to integrate MMC’s copper concentrate procurement and sales of cathode copper, sulfuric acid, and other by-products into Pan Pacific Copper (PPC), while establishing a wholly-owned subsidiary, "PPC Material." The integration will be executed via a company split: PPC first absorbs the target business, then transfers it to the newly established PPC Material on the same day. Originally planned for end-March, the process was delayed by about two months due to detailed discussions. Post-integration, PPC’s ownership stands at: JX 32.50%, MMC 32.00%, Mitsui Kinzoku 21.90%, and Marubeni 13.60%. PPC becomes an equity-method affiliate of all four companies, with PPC Material as its wholly-owned subsidiary. Currently, PPC subcontracts smelting/refining to JX Metal Smelting and Hibi Smelting; after the deal, MMC will also become a subcontractor. Japan’s copper concentrate procurement windows will shrink from three to two, held by Sumitomo Metal Mining and PPC Material. The move aims to counter intensifying overseas competition and sharply deteriorated TC/RC through centralized procurement and cost efficiency. The transaction is planned for October 1, 2026, pending regulatory approvals.

Based on calculations derived from the production plans of major smelters, Japan's copper cathode production in H1 of fiscal year 2026/27 is expected to grow 3.3% YoY, driven by firm demand for copper alloy products and copper wire in the power sector.H1 of the fiscal year runs from April to September.A spokesperson for Pan Pacific Copper (PPC), Japan's largest copper supplier, said the company's copper cathode production in H1 is expected to rise 7.5% YoY, as the operating rate at smelters under JX Advanced Metals is expected to improve.

SMM Morning Meeting Minutes: On Friday evening, LME copper opened at $12,946/mt, fluctuated upward initially to touch a high of $13,039/mt, then the center of copper prices gradually shifted downward to touch a low of $12,907/mt, subsequently fluctuated considerably and finally closed at $12,965.5/mt, with an increase of 2.07%. Trading volume reached 27,100 lots, and open interest reached 325,000 lots, an increase of 783 lots compared to the previous trading day, mainly driven by long position increases. On Friday evening, the most-traded SHFE copper contract 2602 opened at 101,910 yuan/mt, initially climbed to 102,660 yuan/mt, then the center of copper prices shifted downward to touch a low of 101,520 yuan/mt, subsequently fluctuated upward and finally closed at 102,220 yuan/mt, with an increase of 1.93%. Trading volume reached 99,500 lots, and open interest reached 185,000 lots, a decrease of 3,578 lots compared to the previous trading day, mainly driven by short position reductions.

【SMM News Flash】Pan Pacific Copper (PPC) proposed copper premiums for domestic Japanese customers last month, reaching as high as $330 per mt for 2026, a record high. The company is Japan's largest supplier of copper cathode. This spot delivery price, more than three times the $88 in 2025, is a premium on top of the three-month LME copper futures and reflects the supply-demand fundamentals. It also covers costs, including transportation and taxes.

SMM Morning Meeting Minutes: LME copper opened at $10,824/mt overnight, initially touched a low of $10,801/mt before rising straight to a high of $10,871/mt, then moved sideways and finally closed at $10,840/mt, down 0.32%, with trading volume reaching 13,000 lots and open interest at 324,000 lots. The most-traded SHFE copper 2512 contract opened at 86,590 yuan/mt overnight, touched a high of 87,050 yuan/mt early in the session, then fell all the way to a low of 86,530 yuan/mt near the close, and finally settled at 86,770 yuan/mt, up 0.08%, with trading volume at 31,000 lots and open interest at 205,000 lots.