---
title: "RBC stays bullish on copper as prices defy rising inventories"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/278235905.md"
description: "RBC Capital Markets remains optimistic about copper, noting a significant rise in valuations for copper mining companies as investors shift towards hard assets. Since December, EV/EBITDA valuations have increased by 20%, and P/NAV multiples by 10%. Despite a 60% rise in inventories to 1.2 million tonnes, copper prices have rebounded to around $6.10 per pound, up 14% year-to-date. RBC anticipates growing supply deficits and a potential rebound in Chinese demand. Performance among producers varies, with some outperforming due to exposure to precious metals, while others lag due to operational challenges."
datetime: "2026-03-07T23:00:43.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/278235905.md)
  - [en](https://longbridge.com/en/news/278235905.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/278235905.md)
---

# RBC stays bullish on copper as prices defy rising inventories

Investing.com — Valuations for copper mining companies have risen sharply in recent months as investors rotate toward hard assets and maintain a positive outlook on the metal’s long-term fundamentals, according to analysts at RBC Capital Markets.    
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RBC said copper sector multiples have expanded after a volatile start to 2026. Since December, EV/EBITDA valuations at spot prices for its coverage universe have climbed about 20%, while price-to-net asset value (P/NAV) multiples have increased roughly 10%.    
The bank attributed the move partly to what it described as a “halo trade,” where investors increasingly seek exposure to commodities and other hard assets.    
Copper prices themselves have also rallied strongly this year. The metal is up about 14% year-to-date, after briefly hitting a record $6.48 per pound before pulling back as buyers resisted higher prices. Prices have since rebounded to around $6.10 per pound, according to RBC.    
The rebound has come despite a rise in inventories, which RBC said have increased nearly 60% year-to-date to about 1.2 million tonnes. The bank attributed the inventory build partly to seasonal factors and demand sensitivity to higher prices.    
RBC added that around 600,000 tonnes of copper inventories in the United States were accumulated in 2025 ahead of potential tariffs, which could become a headwind if those stocks are later exported back to global markets.    
Even with rising inventories, the bank remains constructive on copper’s outlook, pointing to expectations of growing supply deficits in the coming years and a potential rebound in Chinese demand following the Lunar New Year period.    
Performance among copper producers has been uneven, RBC said. Companies such as Lundin Mining, Hudbay Minerals and Freeport-McMoRan have significantly outperformed peers this year, partly due to their higher exposure to precious metals and other company-specific factors.    
Meanwhile, Capstone Copper, First Quantum Minerals and Ivanhoe Mines have lagged due to weaker guidance, operational challenges or project-specific uncertainties.    
Despite the recent gains, RBC said the sector’s improving free cash flow outlook could support further valuation expansion, as mining stocks still trade at a discount relative to the broader equity market.

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