Company: SCCO
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001558370-25-009879
Chunk: 11

Company: SOUTHERN COPPER CORP/
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 2M
Chunk 11
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 rose from $4.55 to $4.72 or +3.7%). Based on supply and demand dynamics, we estimate that the deficit at 2025 year-end will stand at approximately 300,000 tonnes. Copper inventories worldwide have dropped 30%, going from 541,000 tonnes at the end March 2025 to 381,000 tonnes at the end of June 2025. We estimate that this inventory currently covers approximately five days of global demand.

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In the first half of 2025, the copper market registered a significant arbitrage difference between COMEX and LME prices. At its peak in July 11, 2025, the COMEX price was 119 cents per pound or 27% above the LME price. This huge difference reflected the strong possibility that a 50% tariff will be imposed on U.S. copper imports from various countries.

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Although we maintain a very positive long-term outlook for copper, we believe high tariffs for international trade from the U.S. will affect economic growth worldwide, consequently impacting copper demand in the long run.

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●Molybdenum: Accounted for 11.6% of our sales in the second quarter of 2025 and is currently our most important by-product. Molybdenum prices averaged $20.57 per pound in the second quarter of 2025, compared to $21.69 in the same period of 2024, reflecting a decrease of 5.2%.

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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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