Copper Hits Record Highs as Labor Strikes and Climate Risks Hit Supply

Supply Pathways in Crisis

The mechanisms for supply disruption are currently operating at peak intensity. Peru, which contributes roughly 12% of global production, is facing operational interruptions that are generating meaningful worldwide availability constraints, just as demand from the AI grid boom reaches a fever pitch.

Financialization of the Deficit

Major hedge funds, including the Andurand Fund, have increased their bullish bets on copper, arguing that current prices do not yet reflect the impossibility of meeting 2026 green energy mandates with current mine output.