Copper futures edged higher despite supply pipeline stress.

July Copper futures opened with a gap higher, ultimately holding a modest 1.29% gain late in the session. This marks the second positive week out of the last three. While the International Copper Study Group reports a projected 96,000-ton copper surplus for 2026, severe structural constraints are emerging. The primary bottleneck is a shortage of sulfuric acid, an essential component for extraction. Driven by disruptions in the Strait of Hormuz and China's full export ban, acid prices surged 106% to $307 per ton. This impacts Chile, the top global producer, where first-quarter production fell 6% year-over-year and state-miner Codelco saw costs rise 5% since March. Although U.S. and global warehouses are currently stocked, Section 232 import protection prevents inventory from moving efficiently, leaving the replenishment pipeline under stress as current cushions buy limited time.