LS MnM weighs output adjustments as copper concentrate shortage deepens

LS MnM is considering changes to copper concentrate purchases and production as a global shortage of raw materials drives processing fees to record lows, The Korea Times reported Monday. The company has not announced a finalized production cut.

The squeeze reflects a widening mismatch between mine supply and smelting capacity: copper prices are approaching record highs, but competition for concentrate is eroding smelters’ profitability. Any reduction in LS MnM’s concentrate intake could lower copper cathode and sulfuric acid output.

LS MnM, Korea’s only dedicated copper smelter, operates the Onsan Smelter, which can produce 680,000 tons of copper cathode annually, according to The Korea Times. The company is weighing concentrate intake against purchasing terms, market conditions and operating efficiency rather than maintaining throughput with unfavorable raw material purchases.

The company would revise sales volumes and supply plans while giving priority to reliable deliveries for key long-term customers, the newspaper reported. Some export volumes could change depending on production levels and customer agreements.

The International Copper Study Group projects global copper mine production will grow 1.3% in 2026, according to figures cited by The Korea Times. That marks its third consecutive downward revision. Global concentrate production fell 2% year over year during January-July, including declines of 8.8% in Chile and 29% in Indonesia.

Meanwhile, global copper smelting capacity reached 29.1 million tons after adding approximately 3.4 million tons between 2024 and 2025. Mine production increased by about 860,000 tons over the same period, according to the study group’s data cited in the report.

Other smelters are also responding to the shortage. Mitsubishi Materials plans to stop processing copper concentrate at its Onahama smelter in Japan after March 2027, while Furukawa reportedly plans to lower refined copper production by about 3% in the second half of fiscal 2026. The Korea Times also cited Reuters reporting that major Chinese smelters have discussed possible production cuts.

LS MnM is also exploring more recycling, better recovery of precious metals and by-products and earnings from battery materials to cushion the pressure on its smelting business, according to The Korea Times.