Copper Prices Poised to Soar Amid Global Supply Shortage

The copper market is experiencing a severe shortage of available metal to meet growing demand. Deutsche Bank analyst Daniel Ghali predicts that copper prices could surge by over 50% to $22,050 per metric ton by the second quarter of 2027.

This prediction is based on current global copper inventories being at historic lows and the market shifting from a 'demand-driven' dynamic towards a 'supply liquidity crisis'. The scramble for metal has become so intense that buyers are competing for an increasingly limited pool of spot supply.

Ghali warns that if stockpiling continues at its current pace, copper supply available to other global users could be exhausted by late 2028. However, higher prices may eventually ease this extreme outcome, as it becomes more expensive for consumers to secure the metal they need.

The distribution of copper inventories is adding another layer of pressure to the market. Deutsche Bank estimates that if current trends continue, copper inventories held by the United States and major Asian consumer markets could account for 71% of total global supply by year-end.