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Copper stocks 2026 -- The supply deficit is real, here's the full breakdown and which names are worth watching across the market cap spectrum

P
Mar 27, 2026 · 18:25

The copper supply story has been building for years but 2026 is when the numbers actually force the issue. This is my attempt at a comprehensive breakdown -- covering the macro, the major names, the ETFs, and one small-cap operator that keeps coming up in my research.

The macro case in brief

The International Copper Study Group revised its 2026 outlook from surplus to a 150,000-ton refined copper deficit. Primary mine production is growing at just 0.9% this year. Three major disruptions are driving that: Grasberg in Indonesia remains severely constrained following a mudslide that forced force majeure declarations, Kamoa-Kakula was hit by seismic flooding affecting over 70% of production capacity, and Cobre Panama has been offline since late 2023 with no clear restart timeline.

Meanwhile demand continues to compound. AI data center buildout is creating a new inelastic copper demand layer -- Wood Mackenzie describes it as inelastic because copper represents a tiny fraction of total data center project budgets, meaning developers absorb the cost rather than substitute. EV infrastructure, grid modernization, and renewable energy deployment are adding to what was already a structurally tight market.

JP Morgan projects LME copper averaging $12,500/ton in Q2 2026. Goldman is more conservative at $10,000-$11,000 for the full year. The range itself tells you something -- there is genuine uncertainty, which in copper typically resolves to the upside when supply disruptions persist.

The major liquid names

• Freeport-McMoRan (FCX) -- most direct large-cap play. Operates Grasberg, which is also the source of its near-term headwind. Long-term reserve base is irreplaceable.

• Southern Copper (SCCO) -- largest copper reserves in the industry, $15B+ capital investment program through the decade, mostly Peru and Mexico.

• BHP -- copper exposure inside a diversified miner. Cleaner for those who want commodity upside with more balance sheet protection.

• Teck Resources (TECK) -- increasingly a pure copper story following its coal asset divestiture, with QB2 ramping in Chile.

• ETFs: COPX (Global X Copper Miners ETF) for diversified miner exposure; CPER (United States Copper Index Fund) for physical commodity tracking.

 

Where the secondary market comes in

Here's what most copper discussions miss: the ICSG data shows recycled copper production growing at 6% in 2026 versus 0.9% for primary mine output. As primary supply tightens, secondary processors become strategically more important -- and their input cost doesn't move with ore grades.

The one small-cap name worth knowing in this space is One and One Green Technologies (NASDAQ: $YDDL). They process electronic waste into copper alloy ingots at a facility in the Philippines, and they hold the only Philippine government license to import and process hazardous e-waste -- a regulatory moat that took years to build and is backed by the Basel Convention.

H1 2025 numbers (unaudited): revenue $28.1M (+50.7% YoY), net income $3.8M (+59.5% YoY), EPS $0.0736, gross margins \~25.3%, zero debt. Copper ingot revenue in H1 2025 was $18.5M -- up from $8.2M in H1 2024, a 126% increase. Recent contract activity: $39M in H2 2025 customer contracts with copper alloy at 71% of value, a $17M purchase order from a Japanese buyer for up to 16,000 MT of electronic assemblies, and a first European supply agreement signed in February 2026. In November 2025 alone, the company secured $7.7M in new contracts -- 634,000 kg of copper ingots and 764,000 kg of aluminum -- giving a useful window into monthly revenue cadence. The most recent announcement (March 5, 2026): completion of a processing technology upgrade at San Rafael targeting PCB recycling, with PCB capacity up 30%, gold and silver extraction efficiency improved 15-20%, and expected gross margin improvement of 8-12% on materials processed through the upgraded line. Market cap \~$440M, trading around $8.10 with a 52-week range of $3.61 to $8.89 -- the stock has more than doubled off its lows. P/E is currently 69.95, which reflects growth expectations rather than current earnings scale. Not a replacement for FCX or SCCO in a portfolio, but a genuinely different exposure angle within the same copper thesis -- pure secondary supply, zero mine risk.

The risks across the board

• Macro: if China's economy disappoints, copper demand forecasts collapse fast.

• Tariff risk: any new tariffs on copper or copper-heavy goods could reshape global trade flows.

• YDDL specifically: small and thinly traded, H1 financials are unaudited, and Philippine regulatory exclusivity could eventually be extended to other operators.

 

This isn't a call to pile into any single name. It's a framework for thinking about copper exposure in 2026 across different parts of the market. Happy to go deeper on any piece of this in the comments.

Not financial advice.