Core facts
On the macro side, the US-Iran military conflict continued to escalate. US forces struck Iran on the night of July 29, and Trump said he would resume military action if diplomacy fails and planned to authorize tariffs on Iran. US Q2 GDP rose 1.5% quarter-on-quarter annualized, well below the 2% expectation. The June PCE price index rose 3.7% year-on-year, with inflation easing moderately.
Project and capacity
On supply, Panama is considering setting up a state mining company to cooperate with Canada's First Quantum Minerals to restart the halted Panama copper mine. The Panamanian government is studying several restart options, including a state-owned mining company jointly operating the mine with First Quantum, or First Quantum holding a 60%-65% interest with the government holding the remainder.
On demand, copper prices continue to trade at elevated levels, and as the traditional consumption off-season deepens, downstream purchasing willingness is clearly suppressed.