Burry's Copper Bet: Is Red Metal Headed for a Hot Rally?

Michael Burry, the American investor who rose to fame after correctly predicting the 2008 housing financial crisis, is now betting on copper. He has disclosed his fresh positions in copper contracts and believes that the red metal will continue its rally.

Burry's longer-term thesis for copper is backed by the sharp mismatch between demand and the time needed to develop new mines. According to Apollo Chief Economist Torsten Slok, major copper discoveries with deposits containing at least 500,000 tonnes have fallen from double-digit annual totals in the 1990s and 2000s to one or two in recent years.

Copper prices on the London Metal Exchange (LME) have jumped 18% so far this year, mostly due to large flows of metals to the US on speculation about tariffs on refined copper. Burry's indirect AI bet is Ero Copper, a Brazil-focused copper and gold producer, on which he has disclosed a long position.

Traders are now waiting for any announcement after US President Donald Trump's meeting with Chinese President Xi Jinping this week for signals on trade ties and the global economic outlook.