Bullish Copper View: Tight Supply, Strong Demand To Drive 2026

The outlook for copper remains firmly bullish heading into 2026, supported by strong structural fundamentals. While short-term headwinds such as Japanese yen carry trade unwinding could create temporary volatility, the medium- to long-term picture stays positive. Expectations of fresh stimulus from the US and China, along with accommodative global monetary conditions, are likely to support demand. On the supply side, copper markets remain tight due to aging mines and declining ore quality in key producing regions such as Chile, Peru and Mexico. Limited investment in new mining capacity has further constrained supply. With demand expanding across infrastructure, energy transition and industrial uses, copper continues to be in a structural uptrend. After a strong rally in 2025, another 20% upside in 2026 cannot be ruled out.