Surge in Copper Demand Drives Southern Copper Corp's Stock Up
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Should l Buy SCCO?
Source: Fool
Southern Copper Corp's stock rose by 5.00% as it crossed above the 5-day SMA, reflecting positive market conditions. The increase in demand for copper, particularly driven by AI data centers, is projected to create a significant global refined copper deficit of 330,000 metric tons by 2026. This surge in demand, coupled with supply shortages due to production delays and natural disasters affecting major mines, has led to a bullish outlook for copper prices, further supporting Southern Copper's stock performance.
The robust demand for copper is underscored by projections that data centers alone will require approximately 475,000 metric tons this year, marking a substantial increase from last year. Additionally, the mining sector is facing a CapEx depression, with no new copper production expected for the next eight years, exacerbating supply constraints. These factors contribute to a favorable environment for Southern Copper Corp, as investors anticipate continued price increases in copper commodities.
As the market adjusts to these supply-demand dynamics, Southern Copper Corp is well-positioned to benefit from the rising copper prices, making it an attractive investment in the current climate.
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Analyst Views on SCCO
Wall Street analysts forecast SCCO stock price to fall
10 Analyst Rating
0 Buy
5 Hold
5 Sell
Moderate Sell
Current: 162.070
Low
90.00
Averages
127.95
High
152.00
Current: 162.070
Low
90.00
Averages
127.95
High
152.00
About SCCO
Southern Copper Corporation is an integrated copper producer. The Company is engaged in the production of copper, molybdenum, silver, and zinc. The Company’s mining, smelting and refining facilities are located in Peru and Mexico and conducts exploration activities in those countries and in Argentina, Chile and Ecuador. Its segments include the Peruvian operations, Mexican open-pit operations and Mexican underground mining operations. Its Peruvian operations include the Toquepala and Cuajone mine complexes and smelting and refining plants, including a precious metals plant, industrial railroad and port facilities. Its Mexican open-pit operations include the La Caridad and Buenavista mine complexes and the smelting and refining plants, including a precious metals plant and a copper rod plant and support facilities that service both mines. Its Mexican underground mining operations include five underground mines that produce zinc, copper, lead, silver and gold, and a zinc refinery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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