(Bloomberg) -- Southern Copper Corp. raised its annual production guidance as ore quality improves and the company resolves water supply issues in Mexico, offering a little relief for a tightening global copper market.  

The world’s fifth-largest supplier of the wiring metal expects to produce 948,800 metric tons this year, Chief Financial Officer Raul Jacob told analysts on a conference call Friday. That would be 4.1% more than last year’s result and compares with a projection of 935,900 tons a quarter ago.

The more optimistic guidance follows back-to-back reductions to its projections and comes as copper prices surge to two-year highs partly on concerns that mines will struggle to meet growing demand for the metal in the shift away from fossil fuels.

That strong demand outlook coupled with industrywide supply disappointments are signaling “attractive copper prices,” Southern Copper Chairman German Larrea said in the earnings statement. 

©2024 Bloomberg L.P.