Copper miners are enjoying their moment in the sun. RBC notes that copper stocks jumped 6.4% last week, outpacing the metal itself, as supply disruptions at Freeport-McMoRan’s giant Grasberg mine in Indonesia cut into global output.
With about 200,000 tonnes of copper expected to be lost this year and 300,000 tonnes in 2026, that’s roughly 1.5% of the world's supply suddenly off the market.
The squeeze pushed copper prices up 2.2% over the week to $4.59 a pound, though that was shy of the $4.70 peak as a stronger US dollar took some of the heat out of the rally.
Nickel slipped 0.7% to $6.82, while zinc edged 0.3% higher to $1.33. Bulk commodities fared worse: iron ore fell 2.5% to $104 a tonne on fears of fresh European tariffs on Chinese steel, and metallurgical coal was down marginally.
The market backdrop has been helped by gold, which is hitting record highs, adding to the appeal of diversified miners with exposure to both metals. But in Chile, state-owned Codelco was warned by Moody’s that a production halt at its El Teniente mine could weigh on its credit outlook.
RBC highlights that copper equities tend to move harder than the underlying commodity, historically about twice as much, but this year the leverage has been even greater.
So far in 2025, copper stocks are up 55% against an 18% gain in the metal, the strongest outperformance since 2016.
For UK investors, the focus naturally falls on London-listed miners. Antofagasta PLC (LSE:ANTO) trades at £27.79 with a “sector perform” rating and a £20 target from RBC, while Glencore PLC (LSE:GLEN), at £3.41, carries an “outperform” and a punchy £3.50 target.
Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF), at £48.76, sits on “sector perform” with a £50 target. The takeaway: copper’s rally may have further to run, but the equities are already discounting a higher price deck.