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Copper prices could test higher highs on supply concerns.
For one, traders have been boosting copper shipments to the U.S. amid speculation the Trump Administration could impose new import tariffs in the new year, which could squeeze supply in other regions, as noted The Wall Street Journal.
Two, we have to remember that demand for copper has been growing even faster thanks to the artificial intelligence boom in data centers and renewable energy. All of which is also a strong catalyst for copper stocks, such as Rio Tinto (SYM: RTNTF), Freeport-McMoRan (SYM: FCX), BHP Group (SYM: BHP), and Teck Resources (SYM: TECK).
In addition, as noted by The Wall Street Journal, “Goldman Sachs raised its copper price forecast for the first half of next year to an average of $10,710 a ton from $10,415 previously, citing constrained mine-supply growth and structural demand from grid and power infrastructure. It also said physical traders suggest copper shipments into the U.S. could accelerate more than expected in early 2026. Copper prices are also supported by growing expectations that the Federal Reserve will lower interest rates further this year.”
Other than the copper stocks mentioned, ETFs are also a great option.
Not only do ETFs offer solid diversification, but they also do so at a lower cost.
Global X Copper Miners ETF (SYM: COPX)
Look at the Global X Copper Miners ETF, for example.
With an expense ratio of 0.65%, the ETF allows you to diversify with 40 copper-related holdings, including Lundin Mining, Glencore, Southern Copper, BHP Group, Freeport-McMoRan, Ero Copper, and Taseko Mines to name a few.
Since bottoming out at around $30.60 in April, the COPX ETF rallied to a high of $67.50. From here, we’d like to see it test $80 a share.
iShares Copper and Metals Mining ETF (SYM: ICOP)
There’s also the iShares Copper and Metals Mining ETF.
With an expense ratio of 0.47%, the ICOP ETF offers exposure to global copper and metal ore miners, such as Anglo American, BHP Group, Freeport-McMoRan, Newmont, Lundin Mining, and Teck Resources, to name a few.
Since bottoming out at around $21 in April, the ICOP ETF is now up to $41.76 a share. From here, given the strength of the copper rally, we’d like to see it closer to $50 a share.
Again, with copper prices likely to accelerate, bet on related stocks and ETFs.
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Written by Ian Cooper