Copper ore production flat in Q2 - Commerzbank

According to the International Copper Study Group, around 11.1 million tons of Copper ore were produced in the first half of this year, an increase of 3.1% over the same period last year. However, this increase is entirely attributable to the first quarter of this year, Commerzbank's analyst Barbara Lambrecht notes.

Producers are responding to the expected increase in demand

"In the second quarter, however, production did not increase compared to the second quarter of last year. As a result, primary Copper production from ores has increased more than mining production over the last three months. This is likely to lead to more subdued production of refined Copper in the coming months, as this will put pressure on the margins of Copper smelters."

"At the same time, a major mining company and the government in Zambia independently announced last week that they intend to significantly expand Copper ore production in the coming years. The mining company is currently considering doubling production at an Australian mine from the current 322,000 tons to potentially 650,000 tons by early 2030.

"Meanwhile, in Zambia, the government plans to increase production from about 760,000 tons in 2023 to 3 million tons by 2031. The long-term expansion of production shows that producers are responding to the expected significant increase in demand for Copper as part of the green transformation. In the short term, however, the scarcity of Copper ore is more of a limiting factor."