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Price correction and re-increase in copper prices

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1.Growing Global Demand: Rising infrastructure projects and renewable energy initiatives (like EVs and energy storage systems) are boosting copper demand.

2.Supply Constraints: Declining reserves in major mines, production disruptions in key producers (e.g., Chile, Peru), and limited new investments are tightening supply.

3.Weaker USD: If the Fed cuts interest rates, a weaker US dollar (as copper is dollar-denominated) could push prices higher.

4.China’s Recovery: Economic stimulus in China (the world’s top copper consumer) is expected to drive stronger demand.

5.Inflation Hedge: Copper is seen as a hedge against inflation, attracting more investor inflows if global inflation persists.

Strong demand, tight supply, and supportive macro trends could drive copper prices upward in the coming months.

Sasha Charkhchian

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