Southern Copper Surges 3.57% as Copper Prices Climb to Record Highs Amid AI-Driven Demand Surge

Summary
• Southern Copper (SCCO) trades at $154.00, up 3.57% intraday, hitting a 52-week high of $155.78
• Copper prices on the LME hit $12,405/ton, driven by AI infrastructure spending and supply disruptions
• Leveraged ETF iShares Copper and Metals Mining ETF (ICOP) jumps 3.49%, aligning with SCCO's rally

SCCO's sharp intraday ascent mirrors a broader commodities boom as copper prices hit record highs. With AI-driven demand for data centers and electrification projects intensifying, the red metal's rally shows no signs of slowing. The stock's 3.57% gain—its largest intraday move since 2023—positions it as a key beneficiary of the sector's momentum.

Copper's AI-Driven Rally Fuels SCCO's Intraday Surge
Southern Copper's 3.57% intraday gain is directly tied to the record-breaking rally in global copper prices, which hit $12,405/ton on the LME. Analysts at JPMorgan and Astris Advisory highlight AI infrastructure spending as the primary catalyst, with data centers requiring massive copper for wiring and cooling systems. SCCO's exposure to copper production—combined with a 41% annual price surge in the metal—has amplified its stock's volatility. The company's technical indicators, including a bullish MACD crossover and a 52-week high breakout, further validate the momentum.

Copper Sector Leaders Outperform as AI Demand Drives Commodity Prices Higher
The copper sector is experiencing a synchronized rally, with Freeport-McMoRan (FCX) surging 3.95% and leveraged ETF iShares Copper and Metals Mining ETF (ICOP) rising 3.49%. SCCO's 3.57% gain aligns with the sector's broader trend, as AI-driven demand and supply constraints tighten markets. The iShares MSCI Peru ETF (EPU) and VanEck Green Metals ETF (GMET) also gained 2.42% and 3.07%, respectively, reflecting regional and thematic exposure to copper's boom.

Capitalizing on Copper's Bull Run: ETFs and Options for Aggressive Bulls
• Technical Indicators: MACD (3.1989) above signal line (3.3734), RSI (51.70) neutral, Bollinger Bands (Upper: $150.49, Middle: $144.17) show strong breakout
• Key Levels: 52W high at $155.78, 30D support at $140.08, 200D support at $96.32
• ETFs: ICOP (3.49% gain) and GMET (3.07% gain) offer leveraged exposure to copper's rally

Two options stand out for aggressive bulls: SCCO20260116C155 and SCCO20260116C165. The SCCO20260116C155 call option (strike $155, expiration 1/16/2026) has a 37.54% implied volatility, 38.62% leverage ratio, and 0.498 delta, indicating strong sensitivity to price moves. With a 5% upside scenario (target $161.70), payoff would be $6.70 per contract. High liquidity (turnover $60,313) ensures ease of entry/exit. The SCCO20260116C165 call (strike $165, 37.79% IV, 154.49% leverage) offers explosive potential if SCCO breaks above $160, with a projected $6.70 payoff at $170. Both options benefit from high gamma (0.0379 and 0.0248) and theta (0.2987 and 0.1619), amplifying gains in a bullish environment. Aggressive bulls should consider SCCO20260116C155 into a breakout above $155 or SCCO20260116C165 for a high-leverage play on the 52W high.

Backtest Southern Copper Stock Performance
The backtest of SCCO's performance after a 4% intraday surge from 2022 to now shows favorable results. The 3-Day win rate is 54.28%, the 10-Day win rate is 53.89%, and the 30-Day win rate is 58.75%, indicating a higher probability of positive returns in the short term. The maximum return during the backtest was 5.86% over 30 days, suggesting that there is potential for gains even beyond the initial 4% surge.

Bullish Momentum Unlikely to Subside—Act Now on Copper's AI-Driven Rally
Southern Copper's 3.57% intraday surge is part of a larger commodities supercycle driven by AI infrastructure and electrification. With JPMorgan predicting LME prices to average $12,075 in 2026 and SCCO trading near its 52W high, the stock is well-positioned for further gains. Sector leader Freeport-McMoRan (FCX) gained 3.95%, reinforcing the sector's strength. Investors should monitor the $155.78 52W high and $140.08 30D support level. For immediate action, consider SCCO20260116C155 if SCCO breaks above $155 or ICOP for leveraged exposure to the broader copper rally.