Copper Prices Skyrocket as Supply-Demand Imbalance Worsens
Copper prices have skyrocketed by 48% over the past year, reaching an all-time high of $6.89 per pound in early September. This surge can be attributed to a supply-demand imbalance that's becoming increasingly unbalanced. According to S&P Global, only one major copper deposit was discovered between 2021 and 2025, whereas there were 263 discoveries made between 1990 and 2025.
The majority of these discoveries occurred in the 1990s, with new deposits found in double digits each year. However, recent years have seen a significant drop-off in new discoveries, with none found in 2025.
Even if new deposits are discovered in the near future, it will take an average of 17.5 years for them to reach production due to prolonged and complex permitting processes.
The demand for copper is soaring, driven by investments in artificial intelligence (AI) data centers, solar power, and electric vehicles. Traditional data centers require between 5,000 and 15,000 tons of copper, while AI data centers can use up to 50,000 tons per facility.