Copper prices continue to ratchet higher as the tightness in the market that’s been predicted for years begins to bite.
I’ve been writing for years that copper is the simplest investment thesis anywhere and it continues to play out according to the script
There simply isn’t enough to meet the coming demand for AI and energy. Moreover, it takes over a decade to build a mine and the pipeline is increasingly dry. That means that any supply shortages can only be fixed by higher prices and — eventually — substitution with aluminum in low-value uses.
Front month US copper is trading at $6.65 today, which is within striking distance of last month’s record high. It’s worth noting that there is a premium in US copper due to US tariffs policies. In London, three-month copper is at $13,600/tonne so that puts the premium at about 6%.