Copper Prices Poised to Soar as Demand Surges
Copper prices are poised to soar by over 50% due to rising demand and constrained supply, according to Deutsche Bank's forecast. The investment bank predicts copper will reach $10 per pound by the second quarter of 2027.
The bull case for copper is built on its growing use in AI, renewable energy, EVs, and power grid builders, which are driving up demand. Meanwhile, the copper mining industry has struggled to find new deposits, leading to a supply shortage.
Despite broad commodity market weakness, physical copper and copper miners have bucked the trend with impressive relative strength. The Global X Copper Miners ETF (COPX) is in an uptrend and not far from its all-time highs, while leading copper miners Freeport-McMoRan (FCX), Teck Resources (TECK), and Southern Copper (SCCO) are also near their highs.
Deutsche Bank's forecast is based on a 'historic scramble for metal' taking place, with the U.S. stockpiling copper ahead of possible tariffs and China buying up to fill its strategic reserves. The bank estimates these two countries will have locked up 71% of the world's above-ground copper inventories by the end of 2026.