SLAM Exploration Ltd. (TSXV: SXL)
‘Exploring for critical elements and precious metals in New Brunswick, Canada.’
Copper prices surged to a more than one-month high on Tuesday, fueled by mounting evidence of a tightening physical market in China and renewed bets that Washington will impose tariffs on refined copper imports. Comex copper for September delivery jumped 3.3% to $6.55 per pound ($14,440 a tonne), within 2% of the record set in early June, while three-month copper on the LME rose 1.7% to $13,851 a tonne, its strongest since June 15.
The premium for New York metal over London widened to nearly $600 a tonne, more than double Monday’s gap, signaling that the market is once again pricing in a potential US duty — a decision that now rests with the White House. Year-to-date, copper is up roughly 16% in New York and 10% in London.
The rally rests on solid fundamentals. In China, the spot premium over Shanghai futures vaulted to 435 yuan/tonne from zero a week ago, while the Yangshan import premium hit $103/tonne, up from a January low of $20 — both the highest since May 2025. Shanghai Futures Exchange stocks have collapsed 82% since early May, and LME inventories fell 28%; on Tuesday, 56% of LME metal was cancelled and awaiting delivery, with the cash-to-three-month spread near backwardation, signalling tightening nearby supply. ING strategist Ewa Manthey said copper is being pulled higher by a tightening Chinese market, but the rally needs further evidence of physical scarcity to extend.
Upstream, the squeeze is equally pronounced. Satellite monitoring data showed that 16% of global copper smelter capacity was inactive in the second quarter. Chile was the standout laggard, with inactivity hitting 25.4% — the highest since 2019 — corroborating a 12.9% year-on-year drop in the country’s May output. Record-low treatment charges are claiming permanent casualties: Japan’s Onahama smelter, with an annual capacity of 354,000 tonnes, showed no operating signals in June and is scheduled to stop processing concentrates by early 2027.
Copper equities amplified the move. Southern Copper jumped 6.5% and Freeport-McMoRan gained 6.3%, bringing its year-to-date advance to 23% ahead of its second-quarter results due in two days. Teck Resources, BHP, Glencore, Rio Tinto, Lundin Mining and First Quantum all posted notable gains.
For investors looking to participate in the copper market, ETFs holding copper miners offer a liquid and diversified route. Below are four copper-focused ETFs that have moved in tandem with the rally in copper equities this year.
With $7.1 billion in assets under management, COPX is the largest copper-mining-equity ETF traded on U.S. markets. Its size generally translates into higher liquidity. The fund holds 40 mining companies spanning large to small players, with no single stock accounting for more than 6% of the portfolio, providing solid diversification. Expense ratio: 0.65%.
Issued by BlackRock’s iShares, ICOP has $423.8 million in assets and a lower expense ratio of 0.47%. Like COPX, it passively tracks an index, helping keep fees down. While smaller in scale, it offers a cost-efficient alternative backed by a major asset manager.
COPP differentiates itself by blending copper miners with physical copper exposure. In addition to producers, developers and explorers, the fund invests in the Sprott Physical Copper Trust, which holds physical metal, offering a combination of mining equity upside and direct copper price linkage. It holds a broader roster of large, mid and small-cap miners than the two ETFs above. Net assets: $270.1 million; expense ratio: 0.65%.
COPJ focuses on mid-, small- and micro-cap copper-mining companies. Junior explorers can deliver outsized returns if they discover high-quality deposits, often through acquisition by larger producers, though they come with heightened funding and operational risks. Net assets: $146 million; expense ratio: 0.75%.
Investors are advised to evaluate these instruments based on their individual risk tolerance and portfolio objectives, as the ETFs’ performance will remain closely linked to copper price movements and the fortunes of underlying mining shares.
