Copper equities edged higher on Monday, with major producers outpacing the modest rise in the copper-tracking CPER fund. The fund settled at US$39.64, a 0.20% gain, while Southern Copper surged 1.75% to US$185.91 and Freeport-McMoRan climbed 1.61% to US$63.64.
The equity outperformance reflected tight physical supply conditions for copper concentrates. Chinese spot treatment and refining charges remained subdued, indicating smelters are competing for raw material, which favors miners with integrated operations.
Chile's Codelco maintained elevated production guidance for 2026, easing fears of immediate cathode shortages but not overwhelming demand forecasts. Chile and Peru, the top two producers, remain central to meeting global electrification needs without oversupplying the market.
Market participants focused on the supply-constrained mining complex, rewarding owners of scarce, permitted reserves. The session highlighted a strong appetite for miner exposure over the commodity itself.
Source: riotimesonline.com
