BHP holds steady as copper cracksCopper has been on a rollercoaster in 2025. It broke above US$5/lb in May, driven by strong demand signals from China and clean energy projects. Then came the reversal. US tariffs on Chinese copper goods triggered a sharp selloff. Futures dropped more than 20% in days.
Traders reacted to headlines. But the long-term story remains intact.
BHP, one of the world’s largest copper miners, just delivered record output—over 2 million tonnes in FY25, up 8% year-on-year. Its Escondida and Spence mines are performing strongly. Copper is becoming a key pillar of BHP’s future production and revenue.
The stock is currently trading on the ASX near its 200-day moving average, around AU$39. This is a technical and psychological level that often acts as support in long-term trends. It’s a point where value investors typically step in.
The investment case for copper hasn’t changed. Electrification, energy transition, and AI-driven infrastructure will need vast amounts of copper. Supply remains constrained. New projects are few, and development timelines are long.
Short-term shocks create long-term opportunities. The tariff-driven selloff may shake out weak hands, but it doesn’t weaken the structural demand for copper.
BHP offers a cleaner way to invest in the copper story. It has scale, operational discipline, and a strong dividend yield. Investors get exposure to copper without the risks that come with smaller miners or speculative plays.
We believe this pullback is an entry point. BHP near its long-term average, with strong fundamentals, looks attractive for medium to long-term investors.
Copper may stay volatile. But the direction is clear. BHP is well-placed to ride the next leg higher.
The forecasts provided herein are intended for informational purposes only and should not be construed as guarantees of future performance. This is an example only to enhance a consumer's understanding of the strategy being described above and is not to be taken as Blueberry Markets providing personal advice.
