Copper continues to soar to greater heights. But supply concerns are increasing the flow of shipments to the U.S. on fears potential tariffs could push prices even higher.
“Between 100,000 and 150,000 metric tons of refined copper is expected to arrive in the US in the coming [weeks. That’s] according to four people surveyed by Bloomberg with direct knowledge of some of the shipments,” Mining.com reported. “If the full volume arrives within the same month, it would surpass the all-time record of 136,951 tons set in January 2022.”
There are market headwinds like inflation and market uncertainty. But supply concerns appear to offset these factors. As Stone X Senior Metals Analyst Natalie Scott-Gray noted, copper’s price increases are driven "solely by supply concerns surrounding the potential for universal tariffs to be placed on all imports of copper into the US.” Of course, to bullish copper investors, this is a perfect storm for copper. That’s because it continues to touch record highs.
As Mining.com explained, the flow of copper shipments into the U.S. exacerbates the supply from other parts of the globe. That’s especially so for China, which is the world’s top copper consumer. This will only add to the supply crunch, adding an additional catalyst for higher copper prices.
On the short-term horizon, tariffs appear to be the primary price driver. Both Goldman Sachs Group Inc. and Citigroup Inc. expect the U.S. will impose 25% import levies on copper before year’s end. As the world gets more reliant on alternative energy sources like electricity, copper supply is imperative. That adds to the growth opportunity in the industrial metal.
2 Copper Plays
Investors looking forward to additional price increases in the industrial metal can look to get exposure via miners. Sprott has two options to attain the growth potential of copper. Those are the Sprott Copper Miners ETF (COPP ) and the Sprott Junior Copper Miners ETF (COPJ ).
COPP specifically tracks the Nasdaq Sprott Copper Miners Index (NSCOPP). That index includes producers, developers, and explorers that support the copper mining industry. For diversification, COPP provides blanket exposure by focusing on large-, mid-, and small-cap mining companies.
Higher Growth Potential
COPJ concentrates on small and microcap companies, while also rounding out exposure with midcaps. Small-cap and microcap companies can offer investors higher potential for growth albeit greater volatility. Midcap companies can offset that exposure by offering a mix of large-cap characteristics with a tinge of growth from small-cap equities. COPJ aims to track the total return performance of the Nasdaq Sprott Junior Copper Miners Index. This index is designed to track the performance of mid-, small-, and micro-cap companies in copper mining-related businesses.
Source: Sprott – COPP and COPJ holdings as of 3/27/2025. Subject to change.
A bullish investor is someone who believes that a stock or the overall market will go higher.
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Exchange Traded Funds (ETFs): SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM SGDJ
