Copper Prices Soar to Record Highs Amid Global Supply Shortage
The copper market has reached record highs in 2026, with prices exceeding $14,000 per tonne in May. According to the IEA's Global Critical Minerals Outlook 2026, global demand for refined copper reached almost 28Mt in 2025, a 3.7% increase from 2024.
Africa has emerged as the fastest-growing region of demand for copper, despite relatively low volumes. Other countries such as India, Saudi Arabia, and Malaysia have also seen strong demand growth.
The closure of the Strait of Hormuz in February 2026 created pressure on sulphuric acid supplies, which are necessary for primary copper leaching operations. This was exacerbated by China's ban on sulphuric acid exports, affecting over 15% of global primary copper output.
The IEA warns that new project development is insufficient to meet growing demand, and that the metal supply gap could face a 25% deficit in 2035 under current policy settings. Recycling copper is an old habit, with a 10% recycling rate excluding direct use of scrap, but this could increase to around 20% by 2040.