Southern Copper (SCCO) is down about 3.19% in Thursday trading, tracking a risk-off move across copper-linked equities as the copper market digests a surge in deliverable supply. Comex copper inventories have climbed to a record high as traders ship metal into the U.S. to capture price-arbitrage opportunities, a setup that can weigh on spot pricing and compress expectations for miner margins.

The key macro driver is the inventory shock: record-high Comex stocks are a visible, near-term indicator of improving availability in the U.S. pipeline. When inventories rise quickly, markets often reprice the tightness narrative, and copper producers can sell off even if their operations haven’t changed day-to-day.

Adding to the pressure, investors are still reacting to Peru’s Mining Council action declaring void the authorization that allowed the start of exploitation activities at Southern Copper’s Tía María project and ordering a technical reassessment of the file. The project is widely viewed as a material future growth lever, so renewed permitting uncertainty tends to amplify downside moves on weak copper tape.

Near-term direction likely hinges on whether copper prices stabilize as the inventory build is absorbed and whether Peru’s review produces a clear pathway to reinstatement of the Tía María authorization. Traders are also focused on the next earnings catalyst for updated production/cost commentary and any incremental timeline detail around major Peru projects.