Copper Prices Poised for Long-Term Rally on Energy Transition and AI Demand
Qatar National Bank (QNB) has forecasted that copper prices will continue to rise due to robust global demand driven by the energy transition and expansion of artificial intelligence-related infrastructure. The bank noted in its weekly report that although copper prices have reached about $6.20 per pound, they remain below historical real levels seen during the 2008 commodity super-cycle.
The report highlighted that sustained demand growth, combined with slow supply increases and the lengthy timeline for developing new mining projects, could widen the supply gap and support prices over the long term. The energy transition is cited as the strongest and most sustainable driver of copper demand, with renewable energy technologies requiring two to five times more copper per unit of generating capacity than traditional fossil fuel-based power generation.
The expansion of artificial intelligence has also created a significant new source of copper demand, with AI data centers consuming increasing amounts of electricity. This demands higher power consumption, prompting utilities to expand capacity and invest in more resilient transmission systems, which require intensive copper use.