Copper and PGMs are getting a lot of attention as traders stock up on these metals, which is affecting global supplies. Demand is rising due to changes like people moving away from cities in the US and China’s shift towards SUVs and electric vehicles. In the US, the trend of moving away from urban areas is influencing the demand for PGMs and scrap metal. There is also increasing demand for copper and aluminum, especially for SUVs in China, driven by the push for electrification. The competition in AI hardware may change predictions for copper and aluminum. With rising competition in China, this adds another factor to consider for future demand. Because traders are aggressively stockpiling copper and PGMs, it’s a good time to bet on higher prices. Global inventories are dropping, and LME copper stocks recently fell below 50,000 tonnes, a low not seen since the supply crunch of the early 2020s. This indicates that any further rise in demand could lead to sharp price increases, making long positions in futures or buying call options appealing. The trend of de-urbanization that sped up after 2020 is now a significant force, limiting the supply of scrap metal from city areas. Meanwhile, in the third quarter of 2025, US vehicle miles traveled reached a record high, increasing the demand for PGMs in catalytic converters used in larger gasoline SUVs. We expect this trend to keep supporting palladium and platinum prices well into next year. China’s auto market is leading the charge for demand, with electric SUV sales in November 2025 making up over 45% of new vehicle registrations. This surge in electrification and lightweighting is consuming large quantities of copper and aluminum, and there’s no sign of this trend slowing. So, any price drops in these metals should be seen as chances to build long positions. The AI hardware race is an often-overlooked factor that could boost demand significantly. Major tech companies recently announced $200 billion in planned data center expansions for 2026, creating a consistent demand for copper used in wiring and cooling systems. This new demand is competing for the same limited supply that traditional industries depend on. These markets are at risk of a squeeze since physical stocks are being reduced in exchange warehouses. Our strategy is to stay positive about market trends, using options to take advantage of the expected price swings. The overall picture remains strong, backed by lasting changes in consumer habits, electrification, and the rapid growth of AI infrastructure.

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