Smelter Output Constraints

Chinese smelters are operating at just 85% capacity due to record-low treatment charges. This midstream bottleneck is preventing mine supply from reaching the refined market, even as prices hover at historic highs.

Asian Infrastructure Stimulus

Newly announced stimulus packages in Asia focusing on high-voltage grid upgrades are expected to add 350 kmt of demand over the next 12 months, providing a firm long-term floor for the red metal.