Copper Price Surge Fuels Competition Between SCCO and TECK
Investors are looking to ride the momentum of rising commodity prices, particularly copper. Two prominent diversified base metals miners, Southern Copper Corporation (SCCO) and Teck Resources Limited (TECK), have seen significant gains in recent times.
The current price of copper is near $6.55 per pound, up 48.2% in a year. This surge is driven by tight global supply and strong demand, with copper prices hitting record highs above $6.80 in early August 2026.
Southern Copper, based in Phoenix, Arizona, has the largest copper reserves in the industry and operates high-quality assets in investment-grade countries such as Mexico and Peru. The company has a strong long-term outlook, with production expected to increase to 1.15 million tons by 2031 and continue rising steadily to reach 1.6 million tons by 2035.
However, Southern Copper's total copper production decreased 3.6% in the second quarter of 2026 due to lower ore grades at its Peruvian mines. Despite this, the company has slightly hiked its 2026 copper production outlook to 917,000 tons from an initial estimate of 910,000 tons.
On the other hand, Teck Resources is committed to mining and mineral development with a focus on copper and zinc. The company's planned merger agreement with Anglo American plc will form the Anglo Teck group, which will have more than 70% exposure to copper and be among the top five global copper producers.
Teck Resources saw its adjusted EBITDA surge 204% year over year to CAD$2.2 billion ($1.59 billion) in the second quarter of 2026, driven by stronger realized pricing and higher volumes. The company's long-term growth looks promising with the planned merger agreement and several growth projects.
Comparing estimates for SCCO and TECK, the Zacks Consensus Estimate for Southern Copper's 2026 sales is $16.86 billion, indicating a 25.6% year-over-year jump. For Teck Resources, the consensus mark for 2026 sales is $10.44 billion, suggesting a 35.4% year-over-year increase.
TECK seems to be the better pick currently due to its lower valuation and positive revisions. The company's long-term growth prospects are promising, with several growth projects and the planned merger agreement with Anglo American plc.