Copper futures hovered around $5.4 per pound, easing from a recent high after a months-long surge, as analysts noted that broader demand outside EVs, AI, and renewable infrastructure remains relatively soft. The metal is on track for its strongest annual gain since 2009, up roughly 36.7% this year, as supply concerns dominate. Disruptions at major mines in Chile and Peru, delays in Indonesia reducing output by 8% to 12%, and limited new project development have constrained global concentrate availability. Moreover, Chinese smelters agreed to zero treatment and refining charges for 2026, the lowest ever, further highlighting tight supply and giving miners greater leverage in negotiations. Demand remains strong for electric vehicles, AI data centers, and expanding power grids, with Goldman Sachs projecting more than 60% of copper demand growth through 2030. US tariffs on copper imports sparked pre-emptive stockpiling, drawing record volumes into American inventories.
