Copper Prices Soar Amidst Record-Setting Shortage
Copper prices have hit an all-time high on the London Metal Exchange, surpassing $14,000 per tonne for the first time in history.
The International Copper Study Group forecasts a significant deficit of between 150,000 to nearly 600,000 tonnes this year, marking the market's first structural shortage since 2009.
Three key forces are driving up demand: electric vehicles, power grids, and data centres. EVs require significantly more copper than traditional petrol cars, while power grids rely on it for transmission and distribution. Data centres alone could account for around 475,000 tonnes of copper demand in 2026.
Miners face a challenge keeping up with demand due to the long lead time required to bring new mines online. Existing mines are struggling to meet production targets, and some have even shut down temporarily, exacerbating the shortage.