Copper prices are poised for further gains in the coming years, with UBS and Jefferies both reaffirming their bullish outlooks for the metal amid structural demand growth, tightening physical markets, and easing macro uncertainty.
UBS raised its 2025 copper price forecasts by around 5%, citing a reduction in tariff-related risks and encouraging long-term investors to look past what it sees as a temporary soft patch in demand.
“Underlying demand has remained resilient so far, but we continue to expect a softening in demand/fundamentals to weigh on prices and cap upside in the near term,” UBS analysts wrote in a note.
The Swiss bank expects copper to move into a structural deficit from 2026 as growth in traditional end markets recovers and secular demand drivers—including electrification, defense spending, reshoring and AI—gain momentum.
“Ultimately, we see this as a buying opportunity,” UBS said, highlighting Antofagasta PLC (LSE:ANTO), Zijin Mining, and Anglo American PLC (LSE:AAL) as its preferred copper equities.
Jefferies analysts echoed the upbeat sentiment, calling copper their “preferred commodity” and predicting that prices will head toward cyclical peaks later this decade. “Inventories in some regions are depleting, and the physical market is likely to tighten further over the next 6+ months,” Jefferies analysts wrote, noting that recent strength in copper equities was partly driven by a US trade deal with Vietnam.
“Copper equities and equities more broadly performed well this week in part due to a US trade deal being reached with Vietnam, albeit with 20% tariffs—above the 10% baseline. More trade deals are likely to be announced in coming weeks,” Jefferies added.
UBS said that recent tightness in LME copper was largely driven by arbitrage trades between COMEX and LME. Should the US clarify its tariff policy, the bank expects that trade to unwind, putting some downward pressure on LME prices in the near term.
Still, both banks emphasized the longer-term fundamentals remain robust. UBS pointed to growing demand from renewable energy infrastructure, electric vehicles, and grid upgrades, which are expected to help offset slowing demand from China. In the meantime, end-user restocking in the US and Europe, along with supportive fiscal policies, could provide additional support.
While near-term volatility is expected following copper’s recent rally, Jefferies said copper, along with aluminum and zinc, should perform strongly in the second half of 2025 and beyond. “We believe that our above-consensus price deck is conservative, and upside to the copper price in particular is likely to be far greater in the next cycle than many expect,” analysts noted.
Copper prices have already outperformed many other industrial metals this year, driven by optimism over the energy transition and concerns about future supply shortages. With inventories drawing down and new supply slow to come online, analysts increasingly see copper as a cornerstone of the next commodities supercycle.
Proactive’s Watchlist: Junior miners with copper exposure
While major producers remain in focus, exploration and development-stage companies are gaining traction as investors seek leverage to future price cycles and potential discovery upside.
- Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF) – A multi-asset copper developer in Arizona’s Southern Copper Belt that has pivoted from in-situ recovery to an open pit mining model for its flagship Gunnison Copper Project—featuring a US$1.3 billion NPV and strong economics—while its adjacent Johnson Camp Mine, fully funded by Nuton LLC (a Rio Tinto venture), is set to begin commercial production in Q3 2025 with a capacity of 25 million lbs of finished copper annually.
- Northstar Gold Corp. (CSE:NSG) – Exploring copper-gold porphyry systems in Ontario. Ongoing drilling at the Miller and Rosegrove properties aims to define large-scale mineralized zones.
- Power Metallic Mines Inc (TSX-V:PNPN, OTCQB:PNPNF) – Developing the Nisk polymetallic project in Quebec, with a focus on battery and electrification metals, including copper, alongside nickel and cobalt.
- Aftermath Silver Ltd (TSX-V:AAG, OTCQX:AAGFF) – Advancing the Berenguela silver-copper-manganese project in Peru. A revised resource and updated technical work are expected to define the next steps in development.
- Midnight Sun Mining Corp (TSX-V:MMA, OTCQB:MDNGF) – Focused on high-grade copper exploration in Zambia’s Copperbelt, adjacent to First Quantum’s Kansanshi Mine. Recent drilling has outlined promising targets.
- C3 Metals Inc (TSX-V:CCCM, OTC:CARCF) – Operating copper exploration projects in Peru, Chile, and Jamaica. Its Jasperoide project in Peru remains a flagship asset with near-surface oxide copper potential.
- Condor Resources Inc. (TSX-V:CN, OTC:CNRIF) – Active in Peru, Condor is advancing early-stage copper and gold projects through a prospect generator model. Recent activity includes drilling partnerships at high-potential copper porphyry targets.
- TNR Gold Corp (TSX-V:TNR, OTC:TRRXF) – Holds a royalty on the Los Azules copper project in Argentina, one of the largest undeveloped copper projects globally, operated by McEwen Copper. The asset is advancing toward development, enhancing the value of TNR’s royalty.
As copper prices continue to trend higher and inventories tighten, analysts say juniors with near-term catalysts and scalable assets could offer significant upside.