Copper (Cu) enjoyed a strong session overnight with the December Comex contract gaining +2.1%, taking it within 1% of its August high. The move extended copper’s winning streak to six consecutive sessions, its longest run of gains in four months, driven primarily by tightening physical supply in China, amplified by pre-holiday demand, combined with positive macro sentiment from the China-US summit outlook and a weaker dollar.
Reuters’s recent comments that the White House has yet to decide on tariffs on refined copper imports have largely been digested by the industrial metal, but the related high-flying stocks remain below their 2026 highs, BHP (10.9%) and Sandfire (10.5%). The “big Australian” is set to open up 50c this morning, but there’s currently not the same enthusiasm for the sector that we’ve seen at times through 2026. In our opinion, this isn’t because the “Cu Trade” has lost its structural tailwind but simply a case of a market that was very long, taking some cream off the cake – we did at MM.
- We can see still see BHP testing $70 in 2026 as the profit-taking runs out of steam with Cu firm.
MM remains long and bullish toward BHP around $61
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