Copper's Economic Signal Becomes Increasingly Complicated

Copper has long been considered an economic indicator, known as 'Doctor Copper.' It reflects industrial demand and is used to gauge global growth. However, the signal is becoming increasingly complicated due to structural changes in the market.

The International Energy Agency's 2026 Global Critical Minerals Outlook predicts copper will see the largest absolute demand growth among major critical minerals by 2040, with a projected increase of around 7 million tonnes under its Stated Policies Scenario. This growth is driven by electricity networks and next-generation technologies.

Apart from traditional industrial uses, copper's price movements are now influenced by emerging trends like artificial intelligence and digital infrastructure. Data centres require large amounts of copper for their infrastructure, which can support demand even when other indicators are less impressive.