Copper Prices Soar as Analysts Predict Strong Demand Growth
Copper prices have seen a significant boost in recent months, and analysts are now more bullish on its prospects. According to a Reuters poll, the median forecast of 27 analysts suggests that copper will average $13,169 per metric ton in 2026, up 6% from the previous April poll's estimate of $12,428.
This optimism is driven by growing demand for copper in power and construction sectors, as well as investment in AI infrastructure and electrification. However, analysts also note that mine supply growth remains a concern due to production disruptions and lower guidance from major producers.
The London Metal Exchange cash copper contract has risen more than 10% so far this year, reaching a record high above $14,500 in January. The current price of around $13,714 is expected to average $13,250 a ton in the fourth quarter of this year and $13,059 in 2027.
Natalie Scott-Gray at StoneX noted that demand linked to AI infrastructure, electrification, and power investment continues to underpin consumption. Copper has also benefited from the Iran war threatening Middle East sulphur supplies and expectations of US import tariffs attracting metal to the United States, tightening supplies elsewhere.