Copper and raw fine metals stand out as traders aggressively hoard the metals, putting pressure on already weak global inventories. Structural shifts – from urbanization in the US and tightening PGM supplies to an SUV-led electrification boom in China – are boosting demand, while an AI hardware race could lift the outlook for copper and aluminium, notes Daniel Ghaly, chief commodities strategist at TDS.
Deurbanization in the United States increases demand for PGM, shrinking the supply of scrap
“Copper and PGMs are enjoying most of the upside as traders hoard the metals into oblivion. Micromarket structures remain vulnerable to continued shifting from global inventory pools, while strong macro tailwinds will lead to outperformance in demand forecasts.”
“The continuing trend of urbanization in the United States has significant impacts on demand for PGM products and scrap supplies. Global consumer preferences are shifting to SUVs, leading to a surge in demand for copper and aluminum consumed by China’s automotive sector amid continued electrification and lightweighting.”
“AI race could upend expectations for copper and aluminum amid Chinese competition.”
