Copper price pauses below record as China’s imports slump, mine supply heads for first drop since 2017

Freeport-McMoRan (FCX) is testing new technologies to boost copper production from stockpiles, aiming to increase annual leach output to 800M pounds over 3-4 years. The company is also evaluating an expansion at its Bagdad mine in Arizona, pending a board review. In Indonesia, Grasberg mine is recovering from a mud rush incident and expects full capacity by late 2027. FCX is also operating two smelters in Indonesia. U.S. copper tariffs remain uncertain, and the company plans to allocate half of

Freeport-McMoRan (FCX) reported higher Q2 earnings due to increased metal prices, but faces rising production costs. Q2 unit net cash costs rose 74% YoY to $1.97 per pound, with Q3 expected at $2. Copper sales volumes fell 30% YoY to 710M pounds. FCX projects full-year average costs of $1.9 per pound, up from $1.65 in 2025. Peers like Southern Copper (SCCO) and BHP (BHP) reported mixed cost trends.

BHP reported FY2026 profit of $9.8B, up from $9.0B in FY2025, with a 172 US cent dividend. The company seeks shareholder approval for CEO equity awards and board elections at its October 22, 2026 AGM. Copper and iron ore were key contributors to performance.

Freeport-McMoRan's stock dropped nearly 8% to $70.43 after a Reuters report indicated uncertainty around U.S. copper import tariffs. The decline followed a record copper rally, with futures reaching $6.89 per pound. Analysts note the rally may have outpaced fundamentals, and the company faces operational challenges. Other copper producers and ETFs also saw declines.

Combined BHP Ports Unions will seek arbitration with BHP over a wage deal dispute for Port Hedland iron ore operations. The union, representing 450 workers, seeks a four-year agreement, while BHP offered a 17% pay increase and A$25,000 transition payment. The union claims 40% of workers would be worse off under BHP's proposal.

BHP shares (ASX: BHP) fell over 10% from August highs due to copper price drops, caused by delayed U.S. copper import tariff decisions. Copper contributes over 50% of BHP's earnings. The stock is down 10.46% in three weeks but up 32.41% year-to-date. Copper prices dropped 4.8% in a session, trading at US$6.50 per pound. Analysts have mixed views on BHP's future, with bullish targets up to A$68 and cautious notes on valuation.