Southern Copper Shares Jump 12.8% as Copper Tops $6.50 on Tight Supply
Shares of Southern Copper rose 12.8% this week after copper prices reached a record high above $6.50 per pound on supply constraints and robust data-center demand. Copper inventories dwindled to 14 days of consumption, and Southern Copper and Freeport-McMoRan expect lower 2026 production, reinforcing a bullish outlook.
1. SCCO Experiences Sharper Decline Than Broader Market
Southern Copper shares fell 8.47% on the latest trading day, underperforming the S&P 500’s 2.1% retreat. The sell-off was driven by renewed concerns over global economic growth and its impact on industrial metals demand. Short interest in SCCO rose by 15% over the past two weeks, reaching 6.3% of the float. Institutional investors reduced their stake by an estimated 2.4 million shares during the session, according to trade reporting.
2. Trading Volume Surges on Mixed Analyst Outlook
Trading volume for SCCO was 152% of its 30-day average, reflecting active repositioning by both retail and institutional participants. Eight analysts lowered their 12-month earnings estimates during the past five trading days, trimming consensus per‐share profit projections by an average of 6%. Meanwhile, four firms maintained a bullish view, citing strong balance sheet metrics and a 3.8% dividend yield that remains attractive in a low-rate environment.
3. Weekly Gain Fueled by Copper Supply Constraints
Over the past week, SCCO rallied 12.8% as copper futures hit record highs above $6.50 per pound, spurred by persistent supply disruptions in South America and robust demand from data center construction. Global copper inventories now stand at just 14 days of consumption, the lowest level in a decade. Southern Copper and its peers plan to reduce output in 2026, further tightening market availability and bolstering price momentum for producers like SCCO.