Copper futures reached a record high of $6.95 per pound on September 22, closing at $6.92. The metal has seen a 20% increase in 2026 and a 46% rise over the past year. This growth follows increased purchasing activity from Chinese buyers ahead of upcoming holidays.
Investor Michael Burry recently identified Ero Copper, a producer focused on Brazil, as his preferred investment. Burry cited data from Apollo chief economist Torsten Slok, noting that major copper discoveries have dropped from double digits annually to one or two, with zero discoveries recorded in 2025.
Supply constraints are intensifying as new mining deposits require approximately 18 years to reach production. Conversely, data centers are increasing copper demand within two to three years. S&P Global projects that global demand will rise by 50% to 42 million tonnes by 2040, potentially leading to a 10-million-tonne shortfall.
Current inventory levels reflect the tightening market. Copper cathode stocks in Shanghai dropped to 43,900 tonnes, marking the lowest level since 2023. Meanwhile, cancelled warrants at the London Metal Exchange rose to 122,150 tonnes, which accounts for 48% of the metal currently on warrant.
