The Bulletin with UBS Proper copper opportunity
Jul 21, 2025
Dominic Schnider, a strategist from UBS Global Wealth Management, dives into the dynamic industrial metal markets with a focus on copper. He outlines why copper stands out as a promising investment amidst potential tariffs and economic shifts. The discussion covers the strong demand from China, supply challenges, and how macroeconomic factors like dollar strength influence pricing. Schnider also reveals investment strategies for navigating the volatile landscape, making a compelling case for long-term positioning in copper.
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Mixed Metal Market Resilience
- Industrial metal prices have held up moderately well despite global uncertainties, with copper and aluminum leading the stability.
- However, in currencies other than the dollar, metals have shown weakness, indicating underlying softness.
Manufacturing PMI Drives Metals
- Manufacturing PMIs crucially influence industrial metal prices, reflecting tariff uncertainties and global growth concerns.
- A manufacturing recovery in 2026 could push copper prices above $10,000 per tonne, assuming tariff clarity and rate cuts.
Copper's Tight Supply and Demand
- Copper supply growth is limited due to mining challenges, causing potential market deficits this year and next.
- Meanwhile, demand remains strong, supported by green energy transitions and robust Chinese consumption.