Supply Side Disruptions

A fatal mudslide at Grasberg has triggered a force majeure, shutting down 70% of previously forecasted production. This tightness comes at a time when global data center installations are expected to consume 475 kmt of copper in 2026.

Refining Margin Crisis

While copper prices are at record highs, smelter fees (TC/RCs) have hit an all-time low of $0 per tonne. This is forcing many Chinese smelters to implement production cutbacks, further tightening refined supply.