Prime Highlights:
- Copper prices are expected to reach record highs in 2026 due to strong demand from the energy and technology sectors.
- S. hoarding and supply constraints are driving a global market shortage, creating opportunities for investors and producers.
Key Facts:
- LME copper spot prices have gained 36% this year, recently hitting $11,816 per ton.
- Major producers like Glencore and Rio Tinto have cut 2026 production forecasts, adding to supply tightness.
Background:
Copper prices continue to climb, reaching historic highs as U.S. hoarding and global supply constraints drive market tightness. Industry experts say the surge is amplified by concerns over potential U.S. tariffs on refined copper imports from 2027.
Analysts from Citi predict copper could hit $13,000 per ton early next year and $15,000 by the second quarter of 2026. The rally is supported by strong demand from sectors such as energy transition, electrification, grid expansion, and data-center construction, all of which require large amounts of copper for wiring, power transmission, and cooling.
Physical hoarding in the U.S. has intensified supply pressures globally. Refined copper inflows into the U.S. have increased by approximately 650,000 tons this year, pushing inventories to around 750,000 tons. Higher copper prices in the U.S. compared to other markets have created opportunities for traders, which has tightened supply in other regions, especially at the London Metals Exchange.
Mining issues have cut copper production, with Glencore and Rio Tinto lowering 2026 forecasts. Deutsche Bank predicts a shortage in late 2025 and early 2026, which could raise prices further.
As copper is a key economic indicator, investors and businesses are watching the market closely. The combination of tariff concerns, supply limitations, and growing demand is expected to keep copper in a bullish trend well into 2026.