Copper’s outlook remains supported by strong structural forces: QNB

Doha: Qatar National Bank (QNB) confirmed that copper is currently entering a clearly defined phase of structural transformation in global commodity m...

Doha: Qatar National Bank (QNB) confirmed that copper is currently entering a clearly defined phase of structural transformation in global commodity markets.

In its weekly commentary, QNB noted that despite cyclical volatility and macroeconomic pressures, the metal remains attractively valued in real terms. Copper continues to benefit from long-term momentum driven by the global energy transition and the rapid expansion of AI-powered digital infrastructure.

The commentary highlighted that supply growth remains constrained due to weak capital expenditure and regulatory complexities, reinforcing the likelihood that copper will remain at the forefront of commodities linked to long-term structural transformations.

It identified three main factors underpinning the strength of copper prices over the medium and long term.

The first is limited supply growth. Recent months have revealed fragility on the supply side, with production disruptions at several major mines and successive downward revisions to output guidance by global mining companies. At the same time, capital investment in the copper sector remains below required levels, whether relative to projected demand or the aging profile of existing mines.