July Copper futures staged a significant intraday turnaround, reversing an early 1.55% drop to a session low of 6.2420 to close at their highest level since May 14, finishing the session up 1.32%. This price reversal comes amid tightening global supply dynamics. State-owned Codelco, the world's largest copper producer, revealed that an internal audit showed its 2025 output figures were overstated by 26,875 metric tons, leading to executive departures and a 2% downward revision to reported output. Additionally, global refining and smelting operations face compounding headwinds from geopolitical friction. The ongoing conflict in the Hormuz region has disrupted supply lines for sulfuric acid, a critical input for copper refiners. This issue is exacerbated by China suspending its sulfuric acid exports due to domestic shortages, forcing major refiners to cut capacity while global demand expectations remain elevated.
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