The Structural Deficit

While the reopening of the Strait of Hormuz lowers shipping costs, it doesn't add new mine supply. Global copper inventories remain at historically low levels, insufficient to meet the surge in demand from AI data centers and renewable energy grids.

Infrastructure Stimulus Bid

Rumors of a new 'Green Modernization' stimulus package in China have triggered aggressive buying in the copper market. Traders are positioning for a massive increase in cable and transformer demand through the second half of 2026.