Southern Copper Corp SCCO Shares Surge 1.32% to 2025 High on Copper Market Confidence Rally

Southern Copper Corporation (SCCO) shares surged 1.32% on October 6, marking a sixth consecutive day of gains with a cumulative rise of 11.09% over the period. The stock reached its highest intraday level since October 2025, climbing 3.87% during the session, driven by renewed investor confidence in the global copper market.

The rally reflects a confluence of factors, including a 15-month high in copper prices fueled by supply constraints at Freeport-McMoRan’s Grasberg mine in Indonesia. SCCO, one of the world’s largest copper producers, has reinforced its strategic positioning by maintaining stable output in Peru, its core operational hub. Institutional activity has been mixed, with some investors trimming positions while others, such as Sciencast Management LP, have added to their stakes, signaling divergent views on short-term volatility versus long-term growth potential.

Strategic investments in Peru’s Tía María and Michiquillay projects, backed by an $800 million allocation, are poised to bolster future production capacity. These projects align with SCCO’s projections of $4.3 billion in earnings by 2028, contingent on navigating geopolitical risks like U.S.-China trade tensions and recent Mexican tariffs on copper imports. Analysts highlight the company’s cost efficiency—$1.50 per pound in all-in sustaining costs—compared to peers, which could enhance its competitiveness in a high-price environment.

Despite a dividend increase to $1.00 per share this year, reflecting shareholder value returns, ESG concerns remain a potential headwind. Environmental scrutiny in Peru, particularly around water usage and waste management, could delay project timelines or attract regulatory pushback. Meanwhile, technical indicators suggest SCCO is testing key resistance levels, with further gains dependent on sustained copper price momentum and stable production execution.