LS MnM weighs copper concentrate cuts as shortages squeeze smelter profits

LS MnM is considering reducing copper concentrate purchases amid raw material shortages and low treatment charges, while seeking to prioritize deliveries to long-term customers.

The company said Monday it is reviewing adjustments to copper concentrate procurement volumes to prioritize profitability, taking into account concentrate purchase terms, market conditions and operational efficiency.

LS MnM is Korea's only company specializing in copper smelting. It operates the Onsan Smelter, which has an annual capacity of 680,000 tons of refined copper.

The company is considering increasing the use of recycled materials to lessen the impact of potential production cuts. Other plans include improving the recovery of precious metals and byproducts, as well as expanding its battery materials development business.

The plans come as growth in copper mine production slows while smelting capacity expands, pushing treatment charges lower as competition intensifies. Global copper mine production is projected to grow 1.3 percent this year, according to the International Copper Study Group (ICSG) last Wednesday. This marks the third consecutive downward revision from 2.3 percent in October 2025 and 1.6 percent in April. Global copper concentrate production between January and July also fell 2 percent compared to the same period the previous year.

But global copper smelting capacity increased by about 3.4 million tons over 2024 and 2025 to reach 29.1 million tons, according to the ICSG. The increase is roughly four times the 860,000-ton rise in mine production over the same period.

LME Week 2026, which began in London on Monday, brings together mining companies, traders and smelters to discuss recent market developments.

One concern is that LS MnM's reduction in copper concentrate purchases could lower its output of copper cathode and sulfuric acid, its main products. The company said it will manage sales volumes and supply plans, while prioritizing deliveries to key long-term clients. Detailed supply plans will be set by taking into account future production levels, market conditions and supply arrangements for individual customers.

“Rather than maintaining throughput by purchasing raw materials on unfavorable terms, we are carefully considering how to protect profitability through reasonable adjustments to raw material intake,” an LS MnM spokesperson said. “Through flexible operations aligned with commercial terms, we aim to minimize the impact on earnings.”

The company hopes to use LME Week 2026 as an opportunity to discuss with copper concentrate suppliers.

“We will identify the best operating approach by considering not only profitability but also the impact on our customers and partners, so that supply chain stability is not compromised,” the spokesperson added. “We hope LME Week 2026 will provide an opportunity to broaden understanding of supply-demand imbalances in the copper concentrate market and help miners and smelters explore mutually sustainable commercial terms.”

BY LEE TAE-HEE [[email protected]]