Copper Moderates as Supply Fears Clash with Year End Rebalancing

Supply Deficit and Smelter Crisis

The fundamental picture for copper remains tight. Chinese smelters are operating at near-zero treatment charges due to a lack of concentrate, signaling a significant refined metal shortage in 2026. This structural scarcity is expected to prevent copper from falling as steeply as precious metals during the current correction.

Infrastructure and Grid Demand

Continued investment in AI data centers and global power grids provides a firm demand floor. Analysts anticipate that copper will be one of the first commodities to rebound in the New Year as the 'green transition' super-cycle maintains its momentum.