Copper market confronts structural deficit amid soaring demand

Copper prices have surged to record levels, with the London Metal Exchange reporting around $13,600 per tonne, close to the all‑time high reached in early 2026. Analysts attribute the rise to a tightening supply base: existing mines are aging, ore grades are falling, and new projects take a decade or more to bring production online. Chile, the world’s leading copper producer, has seen its output dip to a 20‑year low and recent weather events have further disrupted mining operations.

Demand is accelerating far beyond traditional construction, driven by electric vehicles, power‑grid expansion, renewable‑energy installations and AI data centres. The International Copper Study Group now forecasts a deficit of roughly 330,000 tonnes in 2026, potentially expanding to about two million tonnes by 2030. Major banks such as Goldman Sachs and J.P. Morgan echo these concerns, warning that the gap could persist for years and reshape the global commodities landscape.