Sprott Asset Management Director, ETF Product Management Jacob White joined Steve Darling from Proactive to discuss the outlook for the copper market after copper prices reached new record highs above US$14,300 per tonne in August 2026.
White said the rally is being driven by a deepening global supply deficit and by traders moving physical copper into the United States ahead of a potential 15% import tariff proposed for January 1, 2027. He noted that earlier expectations of a much higher tariff had already created a significant premium for U.S. copper prices relative to European markets, encouraging additional imports and tightening global supply.
On the supply side, White highlighted long-term production challenges, pointing to Codelco in Chile, historically the world’s largest copper producer, where output has declined over the past two decades despite much higher copper prices. He also emphasized that developing a new copper mine is a slow process, with an average of about 17.5 years from discovery to production, limiting the industry’s ability to respond quickly to higher prices.
White said copper’s recent addition to the U.S. critical materials list has increased strategic governent attention, including investment activity and efforts to accelerate permitting for domestic projects.
Looking ahead, he identified major demand drivers including electricity grid expansion, AI infrastructure buildout, and defense spending, all of which are expected to require substantial additional copper. White said Sprott believes these structural trends support a constructive long-term outlook for the copper market even after the recent price surge.
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