A long bull market beckons for copper

Ignore short-term volatility: a worsening supply squeeze implies far higher prices in future, says Albert Mackenzie, copper analyst and market reporter at Benchmark Mineral Intelligence

Copper bars 1000 grams
(Image credit: Getty Images)

Copper is used in virtually every area of industry and modern life. The red metal is the third most-used metal globally, behind only steel and aluminium. It is even nicknamed Dr. Copper because demand is tied to the health of the broader economy. The idea is that if demand for copper is robust, the broader economy is healthy.

Since China’s rapid industrialisation in the last few decades, copper’s price has been closely tied to the Chinese economy, with 58% of total global refined copper consumed in China alone last year. The Trump administration’s policies have unsettled the market; 2025 has hitherto seen unprecedented volatility. But the long-term picture is clearer: most analysts expect a broad supply deficit.

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Andrew VanSickle
Andrew Van Sickle

Small and medium-sized individual mining companies offer a leveraged bet on a metal’s price, writes Andrew Van Sickle, but the 33% decline in First Quantum’s stock when the Cobre Panama mine closed is a stark reminder of the downside of this approach: if key projects go wrong, you could lose a great deal of money.

Temper risk by considering the big names in copper extraction, such as Anglo American (LSE: AAL) and Antofagasta (LSE: ANTO), both of which are listed on the blue-chip FTSE 100 index.

Alternatively, diversify further by opting for a group of miners through exchange-traded funds such as the Global X Copper Miners UCITS ETF (LSE: COPG), which holds shares in an array of miners, including Antofagasta and Freeport-McMoRan. A second option is the Sprott Copper Miners ESG-Screened UCITS ETF (LSE: CPPR), which holds shares in BHP and Anglo American, among others.

A way to invest in copper without the risk inherent in particular mines or companies is through an exchange-traded commodity (ETC), which tracks the price of a raw material. One popular one to consider is the WisdomTree Copper ETF (LSE: COPA).

This ETC has gained 15% so far this year, but it is worth noting that due to copper’s recent volatility, it slumped by 16.8% following Donald Trump’s announcements on tariffs on his “Liberation Day” in early April – although it bounced back rapidly too.

Copper analyst and market reporter at Benchmark Mineral Intelligence