China just announced that starting next month, it will halt exports of sulfuric acid — a key input for global copper production. That is just the latest force lining up to push copper prices higher. A good way to play it is the Global X Copper Miners ETF (COPX), suggests Sean Brodrick, editor at Weiss Rating Daily.
The motivation behind China’s move ties directly back to the Strait of Hormuz. Sulfur is produced as a byproduct of oil and gas production. The Persian Gulf states ship sulfur to China, where it is turned into sulfuric acid for all sorts of industrial uses — including copper mining.
With supply through the Strait blocked, China wants to conserve sulfuric acid for domestic fertilizer and industrial use during the planting season. Meanwhile, miners around the world use Chinese sulfuric acid in the leaching process to extract copper from oxide and lower-grade ore.
Nervous traders are watching three countries: Chile, the Democratic Republic of Congo, and Zambia. When combining these regions with other acid-starved hubs such as Indonesia and Morocco, 15% to 20% of the global primary copper supply is currently vulnerable to this chemical bottleneck. And already, copper prices are heading higher, after bottoming in mid-March.
How far prices will climb depends on who you ask. But the outlook for copper remains bullish. If you’d rather bet on higher-for-longer prices, you could buy the United States Copper Index Fund (CPER). It uses a rolling position in COMEX copper futures — currently spread across near-term contracts like May, July, and September 2026 — backed by cash and short-term Treasurys.
But I like COPX. It holds a global basket of miners, including Freeport-McMoRan Inc. (FCX), BHP Group Ltd. (BHP), Southern Copper Corp. (SCCO), and Zijin Mining Group Co. Since miners are leveraged to the metal, this can amplify gains. The chart above shows how COPX and CPER have performed since the start of the year.
Recommended Action: Buy COPX.
