David Feng's questions to Southern Copper Corp (SCCO) leadership • Q2 2024
Question
David Feng from CICC asked about copper pricing, specifically whether the COMEX price is a better benchmark than LME for Southern Copper's sales, given the premium and the company's customer base in the Americas.
Answer
Executive Raul Jacob explained that sales from Mexican operations are largely priced using COMEX, while Peruvian operations and some concentrate sales use LME. He acknowledged the current arbitrage favors COMEX but stated the company maintains exposure to both benchmarks as the market can shift quickly.