The Iran conflict has long since reached the copper market as well. The link runs through a seemingly inconspicuous raw material: sulphur. Since shipping traffic through the Strait of Hormuz has been restricted, important supplies from the Gulf region have been disrupted. Sulphuric acid, in turn, is required to extract copper from oxide ores. Around one-fifth of global primary copper production is based on this technology. The conflict is therefore exacerbating an already tight supply situation. At the same time, the expansion of power grids and data centres, as well as AI infrastructure, is driving strong demand. In early August, the copper price on the London Metal Exchange (LME) temporarily climbed above USD 14,000 per tonne.<\/p>\n\n
For mining companies, this is fundamentally a comfortable starting position. The higher the copper price, the greater the operating leverage, assuming stable production costs. Southern Copper is currently benefiting precisely from this effect. However, the shortage also has a downside: rising energy, transportation and chemical costs can make production more expensive. So far, however, the positive price effect has clearly outweighed these factors for the company.<\/p>\n\n