Copper supply expansion since 2010 offers reassurance on market tightness concerns

The copper market is often feared to be at risk of a structural shortage leading to near term market tightness. However, these concerns have often proved to be overblown as historically the supply gaps have been filled. The slow speed at which new mine supply can come online and the expectation for rapidly growing demand from global electrification and accelerating AI adoption reinforces the narrative, and perhaps the price signal, that copper supply is scarce. However, this view may be too focused on how Western mines and Western companies invest in the copper space. Indeed, over the last 15 years, Chinese companies have demonstrated their ability to deploy capital and ramp up mines around the world faster than the conventional 10–20 years considered standard by countries in the West.