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Sprott Junior Copper Miners ETF COPJ, which offers exposure to copper stocks, has gained 14%, becoming the best-performing ETF of March.
Although most of the stocks in COPJ’s portfolio delivered strong returns, we have highlighted the four best stocks that led the ETF higher. These are Northern Dynasty Minerals Ltd. NAK, Trilogy Metals Inc. TMQ, Taseko Mines Limited TGB and Solaris Resources Inc. SLSR.
Copper mining stocks and ETFs beat the stock market in March, driven by a surge in copper prices. Several factors have been driving copper prices higher.
Anticipation of U.S. Import Tariffs: Concerns over tariff policy is the most important factor driving the red metal. President Donald Trump has threatened to impose tariffs on copper imports, leading to a proactive response from buyers. Fearing increased costs, U.S. companies accelerated their copper purchases to stockpile the metal before the enactment of any tariffs. This surge in demand drove U.S. copper prices to record highs.
China's Economic Stimulus Measures: China, the world's largest consumer of copper, has introduced a 1 trillion yuan stimulus package aimed at bolstering infrastructure development. This initiative is expected to significantly increase demand for industrial metals, particularly copper. The anticipation of heightened Chinese demand has further propelled global copper prices (read: Copper Miner ETF Hits New 52-Week High).
Supply Chain Constraints: Copper has been facing supply constraints due to a lack of mineral investment and reduced refinery capabilities. Analysts predict a global copper deficit of more than 200,000 tons in 2025, underscoring the imbalance between supply and growing demand.
Solid Demand: The demand for copper has been on the rise amid a rush to build data centers and the continued electrification of the global economy. The red metal is an integral element in manufacturing electric vehicles, power grids and wind turbines, especially as the global economy electrifies. It is also a key metal for cables used in data centers, whose growth has been fueled by an artificial intelligence boom.
Strategic Investments: In response to the anticipated demand surge, leading mining firms are making substantial investments to expand copper production. For example, BHP has embarked on a $50 billion strategic shift to focus on copper and potash, aiming to align with the new commodities supercycle and secure a future in these critical resources.
Let us take a closer look at the fundamentals of COPJ.