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| Antofagasta |
Chilean mining major Antofagasta reported a decrease in overall copper output for the January-to-September period despite achieving a notable third-quarter operational recovery. Third-quarter production rose 7% quarter-on-quarter to reach 151,900 tonnes. Operations at the primary Los Pelambres asset rebounded strongly from earlier severe weather disruptions. However, lower ore grades at the Centinela Concentrates facility offset total group production gains.
Operating Cost Escalations and Production Guidance Forecasts
However, elevated operational expenditures continue to squeeze operating margins across South American copper mines. Elevated global diesel prices prompted Antofagasta to raise its 2026 cash cost guidance. The company revised cash costs before by-product credits upward to $2.60–$2.70 per pound. In contrast, management maintained full-year copper production guidance at 625,000 to 655,000 tonnes. Initial 2027 production guidance stands between 630,000 and 690,000 tonnes.
Global Scrap Metal Supply Implications and Market Outlook
As a result, structural supply tightness in primary copper concentrate continues to impact global smelting capacities. Slower primary mine expansions bolster market demand for high-grade secondary scrap alternatives. Meanwhile, construction activities at the Centinela and Los Pelambres expansion projects are approaching completion. Commissioning during 2027 remains vital for long-term supply stability. Secondary copper processors expect scrap utilization ratios to stay high throughout this period.
ScrapInsight Commentary
Primary mine supply constraints and rising cash costs at major producers like Antofagasta underline the growing structural deficit in global copper concentrates. In response, copper smelters and refining facilities will increasingly rely on high-grade copper scrap to maintain processing utilization rates. As primary mine expansions face persistent delays and inflationary pressures, secondary scrap metal will remain a critical stabilizer for the global refined copper market.
