Supply Chain Friction

Continued disruption in the Strait of Hormuz has intensified the energy shock, lifting operation costs for major refiners. Smelter fees (TC/RCs) remain at historic lows, forcing Chinese smelters to implement production cuts.

Long Term Structural Support

Beyond near-term geopolitical friction, copper remains underpinned by global electrification trends and steady consumption from power grid upgrades. Analysts forecast the market will remain in a structural deficit through 2027.