The copper market is tight, making the metal attractive

Advertisement/Advertising - This article appears on behalf of Arizona Sonoran Copper Company Inc., Meridian Mining UK Societas, with which SRC swiss resource capital AG has paid IR consulting contracts. Creator: SRC swiss resource capital AG · Author: Ingrid Heinritzi · First published: Septembre 03, 2025, 11:25 a.m. Europe/Berlin

Although refined copper inventories in the US are high, as traders have brought forward imports in response to tariff announcements, there are several factors driving copper demand. According to forecasts, global consumption of refined copper will increase by around 4.5 percent in the current year. At the same time, mine supply is expected to increase by only 0.5 percent. Building new mines is a costly and lengthy process. Many copper mines are relatively old, and productivity is declining.

Refined production is estimated to increase by only 1.9 percent. Although Chinese production is higher, this is offset by cuts abroad. Experts also expect a further increase in the global deficit of refined copper for 2026. Factors driving up copper consumption include renewable energy sources, power grids, construction, and electric vehicles. In addition, Chinese economic stimulus measures are likely to support demand. Power grids need to be expanded, particularly in the US and Europe. Infrastructure is also being developed in India and Africa. All of this requires billions and a lot of copper. A completely different argument lies in the price of gold. Looking at the charts for gold and copper, the price of copper usually follows the price of gold with a certain time lag. When the price of gold rises, there is often a broad upward movement in the commodities sector, especially for copper.

Arizona Sonoran Copper Company - https://www.commodity-tv.com/ondemand/companies/profil/arizona-sonoran-copper-company-inc/ - is one of the copper companies that should benefit from this development. The company owns the Cactus project in Arizona, which has received a very good economic assessment.

Meridian Mining - https://www.commodity-tv.com/ondemand/companies/profil/meridian-mining-uk-societas/ -owns the promising Cabaçal project (copper, gold, silver) in Brazil, located in a region with a well-developed and productive mining sector.

Current company information and press releases from Meridian Mining (- https://www.resource-capital.ch/en/companies/meridian-mining-uk-societas/ -) and Arizona Sonoran Copper Company (- https://www.resource-capital.ch/en/companies/arizona-sonoran-copper-company-inc/ -).

Sources:

https://news.metal.com/newscontent/103494397/Global-Copper-Market-Tightens-Further-Despite-Tariff-Shock-and-Inventory-Surge/

https://www.boerse.de/historische-kurse/Kupferpreis/XC0005705501

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