Copper Prices Poised for Further Gains Amidst Growing Demand

Copper prices are expected to continue their upward trend due to growing global demand and supply constraints. According to QNB, the bank's weekly report notes that copper prices have risen to approximately $6.20 per pound, surpassing their highest levels in several years.

The report highlights that continued demand growth, coupled with slow increases in supply, could widen the supply gap and support copper prices over the long term. The global energy transition is driving an unprecedented increase in industrial demand for copper, with renewable energy technologies requiring between two and five times more copper per unit of generating capacity than traditional fossil fuel-based power generation technologies.

The electrification of the economy is a key factor supporting copper demand, as electric vehicles alone require up to four times more copper than conventional internal combustion engine vehicles. Additionally, modernizing electricity grids, expanding transmission networks, and developing electric vehicle charging infrastructure all require substantial amounts of copper.

On the supply side, the report notes that the copper market remains constrained by structural factors. Limited growth in mine production in 2026 and the continued underperformance of several major producers, including Codelco, are contributing to the supply gap. Major copper projects typically require 10 to 15 years to develop from discovery to full production.

The report concludes that the copper supply gap could widen in the coming years, with demand growth driven by the global energy transition and AI-related infrastructure development. The ability of supply to keep pace with this growth remains limited, potentially supporting copper prices in the coming period.