Company: SCCO
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001558370-25-005975
Chunk: 11

Company: SOUTHERN COPPER CORP/
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2M
Chunk 11
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.7%). Based on supply and demand dynamics, we estimate that the deficit at 2025 year-end will stand at approximately 300,000 tonnes. Regarding copper inventories worldwide, we estimate that they are currently covering about one week of global demand.

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In the first quarter of 2025, the copper market registered a significant arbitrage difference between COMEX and LME prices. At its peak in March 26, 2025, the COMEX price was 73 cents per pound or 17% above the LME price. This huge difference reflected the strong possibility that a 25% tariff will be imposed on U.S. copper imports.

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Although we maintain a very positive long-term outlook for copper, we believe an intense commercial war between the U.S. and China will affect economic growth worldwide, consequently impacting copper demand.

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●Molybdenum: Accounted for 9.6% of our sales in the first quarter of 2025 and is currently our most important by-product. Molybdenum prices averaged $20.43 per pound in the first quarter of 2025, compared to $19.84 in the same period of 2024, reflecting an increase of 3.0%.

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Molybdenum is mainly used in the production of special alloys for stainless steel that require significant hardness, corrosion and heat resistance. New uses for this metal are associated with lubricants, sulfur filtering of heavy oils and shale gas production. 

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For 2025, we believe that prices will hold at the current level of about $20.00 per pound given its diverse applications in critical industries.