Zambian Copper Smelter Plans to Halt Production, LME Copper and SHFE Copper Both Closed Lower Overnight
Zambia's two largest copper smelters and sulphuric acid producers are planning extended maintenance shutdowns later this year. This move is expected to significantly impact the country's copper production and the supply of sulphuric acid, a critical chemical for processing copper and cobalt. The disruption is exacerbated by global supply issues for sulphuric acid, partly due to the Iran war, affecting mines in neighboring Congo. Zambia, a major producer of metals vital for clean energy technologies, produces approximately 2 million metric tons of sulphuric acid annually, primarily as a byproduct for local mines, with surplus exported to the Democratic Republic of Congo. The impending shutdowns will further strain the supply chain for these essential commodities. Meanwhile, copper prices saw a decline overnight. LME copper closed down 0.78% at $13,245/mt, while SHFE copper 2606 contract fell 0.13% to 102,490 yuan/mt. Both markets showed an increase in open interest, indicating that bears were adding positions.
