The convergence of tight physical markets, currency debasement and policy intervention is creating conditions for a sustained repricing of scarce resources.

From refined petroleum products and rare earths to industrial metals and certain agricultural commodities, tightening physical markets underpin our "own the bottlenecks" theme.

Deutsche Bank's head of metals research, Daniel Ghali, added urgency to that theme on Monday morning, warning that available copper inventories globally have fallen to "unprecedented lows." As US and Chinese stockpiling squeezes supplies available elsewhere, Ghali sees copper rallying roughly 50% to $22,050 a ton by the second quarter of 2027.

Ghali estimates China's strategic reserves hold about 2.05 million tons, equivalent to 43% of global above-ground inventories. Meanwhile, US tariff-driven stockpiling demand could leave 1.3 million tons tied up at warehouses by year-end. Together, the bank estimates US and Chinese stockpiling will encumber 71% of global inventories.

"The combination of de-globalization and decades of underinvestment in supply has created vulnerabilities such that, by year-end, stockpiling in the USA and China will have encumbered 71% of global inventories," he warned.

At the current stockpiling pace, Ghali forecasts that freely available inventories would approach zero by the end of 2028, adding that this would be the exact breaking point the market must prevent through demand destruction, or higher prices. 

Ghali called this the "most acute copper scarcity on record" and a "de-globalization endgame." The industrial metal's story is quickly shifting from an AI data center boom to a liquidity crisis, as free-floating copper inventories decline to unprecedented levels.

The risk now is a bidding war for the remaining accessible metal that ends only when demand destruction arrives. Access to metal is critical as resource nationalism engulfs the world, with China restricting rare earths and other critical metals. These materials are essential to defense and the looming rearmament theme in the West.