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Copper Prices Set to Soar on 2026 Supply Shock
3 Dec
Summary
- Global copper demand is projected to exceed supply significantly in 2026.
- Renewables, EVs, and grid upgrades are major drivers of increased copper demand.
- Supply constraints include declining ore grades and few new mine projects.
The global copper market is poised for a significant deficit by 2026, with demand expected to substantially outstrip new supply. This shift is largely driven by the accelerating global transition to renewable energy sources, the widespread adoption of electric vehicles, and essential grid modernization efforts.
Further bolstering demand are ongoing urbanization trends, particularly in the Asia-Pacific region, which fuel construction and electrical applications. Projections indicate a moderate global economic recovery in 2026, adding further pressure on copper resources.
Supply-side challenges, including declining ore grades, a scarcity of new mine discoveries, and potential operational disruptions, are expected to exacerbate the deficit. Forecasts range from a 150,000-ton deficit to over 400,000 tons, signaling a bullish outlook for copper prices.
