UBS expects the copper market deficit to widen from 219,000 tonnes this year to 379,000 tonnes in 2027, and sees prices reaching $15,500 a tonne next year.
Copper treatment charges fell to a record low below minus $200 a tonne in September, from around minus $45 at the start of the year, which UBS says reflects insufficient mine output to meet smelter demand.
Chilean production fell 10% month on month in July amid weather-related disruptions, with Escondida and Codelco accounting for most of the decline.
Since early July, LME inventories have fallen by 69,750 tonnes and Shanghai by 79,650 tonnes, while COMEX stocks rose by more than 91,200 tonnes.
Source: UBS