Key Facts
On August 5, the non-ferrous metals sector rallied broadly. LME copper returned to the $14,000/t mark, with spot premiums widening to $115/t, the largest since January. LME deliverable stocks were only 94,000 tonnes, just slightly above one day of global copper consumption.
Supply and Demand Dynamics
Chile, the world's largest copper-producing country, is in trouble. Its copper output in Q2 2026 was 1.27 million tonnes, down 7.7% year-on-year, the lowest since 2007, with water shortages, falling ore grades, and equipment maintenance issues exposed. The PE of the Shenwan copper industry is still at the 27th percentile of the past decade, leaving ample room for valuation recovery.