Copper: Supply Crisis Worsened by Global Demand in 2026

SilentAlpha · 2026-02-05T17:07:47+00:00

The copper market in 2026 faces a growing shortage, driven by demand for electric vehicles and data centers. A deficit of 10 million tons is expected by 2040, with Asia dominating consumption, which could lead to historically high prices.

SilentAlpha

2026-02-05 17:07:47

Abstract generation in progress

The copper market dynamics are experiencing significant changes in 2026, driven by a convergence of factors that threaten to deepen the global shortage. According to NS3.AI analysis, the supply outlook is worsened by the depletion of accessible reserves and logistical challenges in major producing regions.

Demand-side pressure mainly comes from two strategic sectors: the acceleration of the transition to electric vehicles and the massive expansion of data centers powered by artificial intelligence. These segments require unprecedented volumes of the red metal, intensifying competition for limited supplies.

Forecasts indicate a cumulative deficit of 10 million tons by 2040, a scenario that reflects the growing imbalance between available production and future needs. Asia will lead this demand absorption, capturing approximately 60% of the projected global growth, solidifying the continent as the epicenter of metal consumption.

In terms of valuation, analysts warn that copper prices could reach record highs if they manage to break through key technical resistances in the medium term. The structural scarcity outlook reinforces bullish prospects for the commodity, making the red metal one of the most dynamic assets in the current economic cycle.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.