Copper Dec’25 Futures ($US)

Copper (Cu) slipped over 2% on Friday night, but it still made fresh nine-month highs last week. The supply/demand backdrop for Cu remains bullish, with BHP echoing our thoughts with their failed massive ~$77bn takeover attempt of major producer Anglo America (AAL LN). The trouble for the “Big Australian” is there aren’t many alternatives in the Cu space that will offer meaningful scale to its earnings.

• We expect another test, and probable break, of $US5.00/lb by Cu over the coming months, in line with our bullish outlook toward China.