Copper Price Breaks Through $14,000, JPMorgan Says It's Time to Buy

Copper prices have been climbing continuously since the low point in March, with the London Metal Exchange (LME) copper prices officially breaking the $14,000 per ton mark on Tuesday. Morgan J.P. Morgan's Director of Market Intelligence, Andrew Tyler, pointed out today that copper prices have risen by 14.4% since May 31, beating the S&P 500 index by 84 basis points, and also significantly leading the Bloomberg Commodity Index by 10 percentage points.

Tyler made a clear statement: "Considering the current positive macroeconomic environment and the potential continuation of the 'global growth restart' theme, now is the time to buy or add positions related to copper." He recommended to clients to gain exposure through the JP Morgan Global Copper Basket Index (JPG1COPP) or the Copper Mining ETF (COPX).

The factors driving the rise in copper prices are multifaceted. In the short term, the回暖 of demand in China is the main catalyst, with Morgan J.P. Morgan commodity strategist Greg Shearer noting that Chinese copper inventories are still below the five-year trend level, and the continuation of inventory drawdown supports consumption expectations. Ewa Manthey, commodities strategist at ING Groep NV, also said that inventory levels outside the United States are low, and supply constraints make copper prices highly sensitive to any marginal changes in demand.

The medium-term logic points to broader infrastructure demand. AI data center construction, power grid expansion, and electrification processes make copper an indispensable core material, and the structural demand narrative is attracting increasing attention from long-term capital.

Disturbances on the supply side are also undeniable. The tension in the supply chain of the Strait of Hormuz has led to a shortage of sulfur and sulfuric acid, threatening parts of the copper smelting process and further compressing global available supply.

The longer-term supply and demand gap has already raised industry warnings. Scotia's mining analyst, Orest Wowkodaw, at today's Toronto Commodity Conference, stated that due to supply disruptions, the global copper market will face a supply gap of 350,000 tonnes by 2027, far exceeding the previously expected balance. He said bluntly: "This is almost the perfect storm for copper prices to rise - despite high prices, the supply side is still under extreme pressure. I have never seen a better global copper demand environment than today, which provides support for 'higher prices to last longer.'"