Why Copper ETF COPX Is Attractive Amid Supply-Demand Imbalance
Copper prices have surged due to a growing imbalance between supply and demand. New copper discoveries are declining, with only one deposit found annually from 2021 to 2025, while it takes an average of 17.5 years for new deposits to reach production. Meanwhile, demand is rising sharply driven by AI data centers, electric vehicles, and solar power infrastructure. The Global X Copper Miners ETF (COPX) has gained traction as a result, with the price up about 24% this year and 64% over the past year. The fund holds around 44 copper miner stocks across major companies like Freeport-McMoRan and Southern Copper. Despite recent volatility in COPX's performance, analysts remain optimistic due to long-term supply constraints and increasing demand for copper from AI infrastructure development.
Tickers: $COPX $FCX $HBM $SCCO
Topics: AI data centers copper demand surge electric vehicles supply chain