We’ve all read about the bullish tailwinds of the EV transition and AI-driven data centre build-out, with both trends driving demand for the same critical commodities — most notably copper (Cu), and to a lesser extent uranium, lithium and nickel. Cu sits at the centre of both themes, while decade-long mine development timelines continue to constrain new supply, underpinning the case for sustained price strength and potential equity rerating’s for producers. The key risks are weaker Chinese demand, slower EV adoption and AI infrastructure spending falling short of today’s lofty expectations – importantly, the crowd is definitely bullish towards copper.
We discussed Cu in June’s webinar: “Are commodities entering a Supercycle?” which can be watched again here: In a nutshell, MM does believe we are entering a Supercycle for some commodities and, in particular, copper. However, strength in the industrial metal is to a degree priced into related miners; e.g. Sandfire (SFR) has more than doubled since the start of 2025. Our view at the moment is another leg higher could cap the advance at least for a year while markets wait to see how the respective tailwinds play out.
- We continue to initially target the US$15,000 area of LME Cu, or 8-10% higher.
MM is bullish towards Copper over the coming years
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