Overview
UBS released a new commodity outlook on 1 July 2026, identifying four copper mining equities it considers preferred amid ongoing supply constraints and resilient demand from the energy‑transition sector.
UBS Commodity Outlook
The bank notes that visible copper inventories remain elevated, but a significant portion of the U.S. stockpile may be unavailable for market sale, limiting near‑term downside risk even if underlying demand weakens. While weaker demand relative to resilient smelter output has narrowed short‑term deficits, UBS maintains a constructive long‑term view, citing limited mine supply visibility over the next one to three years. Higher capital expenditures and final investment decisions are expected to affect supply only from the 2030s onward. UBS projects that resilient demand will create deficits that erode the elevated inventories and support sustainable price increases, a view reinforced by recent geopolitical developments in the Middle East.
Preferred Copper Mining Equities
1. Freeport‑McMoRan – Ranked first. The board declared a cash dividend of $0.15 per share, and UBS reiterated its Buy rating on the stock.
2. First Quantum Minerals – Ranked second. Deutsche Bank upgraded the company to Buy from Hold, citing an anticipated decision on restarting the Cobre Panamá mine.
3. Anglo American – Holds the third position, benefiting from UBS’s long‑term constructive outlook despite near‑term inventory concerns.
4. Teck Resources – Completes the quartet. Selected based on expectations that resilient demand will drive market deficits and support copper price upside. Teck reported Q1‑2026 revenue of $3.94 billion and earnings per share of $1.75, both surpassing expectations.
Additional Notes
The article was generated with AI assistance and reviewed by an editor, with a reference to Investing.com’s premium news service. No further regulatory or compliance actions were mentioned.