Copper and PGMs stand out as traders aggressively stockpile metals, straining already thin global inventories. Structural shifts—from US de-urbanization tightening PGM supply to China’s SUV-led electrification boom—are strengthening demand, while the AI hardware race could further upend Copper and aluminum forecasts, TDS' Senior Commodity Strategist Daniel Ghali notes.

US de-urbanization boosts PGM demand, tightens scrap supply

"Copper and PGMs have most upside as traders stockpile metals into oblivion. Market microstructures remain vulnerable to a continued diversion from global inventory pools, whereas strong macro tailwinds will lead to outperformance in their demand expectations."

"The ongoing de-urbanization trend in the US is having substantial impacts on PGM demand and scrap supply. Global consumer preferences are shifting to SUVs, leading to substantial upside in Copper/aluminum demand consumed by China's auto sector amid ongoing electrification and lightweighting."

"The AI race can upend associated Copper & aluminum expectations amid Chinese competition."