Bank of America says metals sector gains government attention as supply constraints persist

Bank of America’s Metals & Mining conference highlighted growing government focus on securing metals supply chains as decade-long underinvestment has tightened markets. Copper demand is forecast to accelerate (South32 sees 2.6% CAGR for 2025–2035 vs 2.1% previously), while Chilean production is set to slip ~2% in 2026, and the three largest copper mines have produced about 660,000 tonnes less since 2024. Producers and governments are increasingly supporting early-stage projects to relieve shortages, and LME inventories have declined with physical premia pointing to tightening in the US and Europe. The net market impact is upward pressure on metals prices and greater policy and capital intensity in mining, though project restarts (eg. Cobre Panama, Kamoa Kakula) face uncertain, gradual ramps.