Copper investors looking for a lifeline may have to wait. JPMorgan analysts warn that a perfect storm of trade tariffs, geopolitical risks and AI disruption fears is weighing on copper-exposed stocks.
The firm is staying Underweight on Antofagasta PLC (OTCPK:ANFGF) and Boliden AB (OTCPK:BDNNY), while keeping Anglo American PLC (OTCQX:AAUKF) (OTCQX:NGLOY) at Neutral with a Negative Catalyst Watch.
US Tariffs Add More Pressure To Copper Miners
The latest blow? The U.S. administration's decision to impose tariffs—25% on Mexican and Canadian imports, 10% on Chinese goods and potential tariffs on the EU.
While not the extreme 60% tariffs some feared, the move is expected to hit EMEA mining and metals (M&M) stocks hard. JPMorgan remains cautious, saying the sector needs either a de-escalation in trade tensions or a fresh round of China stimulus to see any upside.
Read Also: Newmont Completes $425 Million Asset Sale, Focuses On British Columbia Growth
AI, Geopolitical Risks Weigh On Copper Outlook
Meanwhile, AI-driven copper demand fears have surfaced with DeepSeek's latest tech developments. But JPMorgan isn't buying into the long-term disruption narrative. The analysts argue that data centers will continue fueling copper demand, projecting growth from 400kt in 2025 to 700kt by 2030—hardly a demand collapse.
The Democratic Republic of the Congo (DRC) adds another layer of risk. While the recent surge in violence is far from the country's copper-producing heartland, the unrest underscores the fragility of global supply. With the DRC now accounting for 13% of global copper output, any prolonged instability could rattle the market.
Where To Find Value In The Metals Space
But for copper bulls, it may be a long wait for the clouds to clear.
Read Next:
Photo: Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
