UBS Names Four Copper Miners as Supply Tightens Against Demand

Copper has become one of UBS’ highest-conviction commodity themes as electrification and data-center construction drive demand faster than new supply can come online, supporting a multiyear market upcycle.

UBS identified Freeport-McMoRan, First Quantum, Hudbay and Teck Resources as preferred copper-linked exposures. The companies are viewed as positioned to benefit from structural demand growth and a constrained supply response.

London copper futures closed near record highs at the end of the week. Global inventories have fallen to “unprecedented lows,” while U.S. and Chinese stockpiling has contributed to tighter supplies elsewhere.

Daniel Ghali has a new second-quarter 2027 copper price target of $22,050 per ton. Near-term uncertainty over tariffs and trade policy remains, but supply growth is expected to lag demand growth for several years.

A strike at Antofagasta’s Centinela copper mine in Chile has begun. Centinela produced 240,400 metric tons of copper in 2025, more than 35% of Antofagasta’s total output. The stoppage could affect production if it continues.

The strike adds a potential supply risk to a copper market already facing constrained production growth and rising demand from power infrastructure, electrification and data-center construction.