Copper Jumps 22% in 2026 as Supply Concerns Fuel Super-Cycle Bets

• Copper Price and copper futures are rising as supply tightens and stronger copper demand raises concerns about a potential shortage.
• S&P Global expects global copper demand to rise 50% by 2040, potentially creating a 10M-ton supply gap without major new investment
• AI, data centers, power grids, EVs and renewable energy are adding to long-term Copper Demand while new mine development remains slow

Copper price has continued to surge, with copper futures now hitting a record level after rising 22% in 2026. Traders are now anticipating tighter supply and stronger demand, which is being reflected in rising copper prices. The most active COMEX copper contract reached about $6.93 per pound on September 22, while the contract was around $6.83 on September 23.

This rally has been surging as of late, primarily due to factors related to copper supply and shortage concerns. Copper shortage narratives are now gaining strength as of late, shaping copper prices in the process.

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Copper Supply Is Now Facing Pressure

Copper supply dynamics are now gaining the central spotlight. The asset’s price is now witnessing a new surge in its momentum as copper shortage scenarios continue to push its price upwards. S&P Global expects global copper demand to rise by 50% by 2040, from 28.4M metric tons to roughly 42M tons. The institution later emphasized that without major investment and new supply, commercial sectors may encounter a steep copper shortage, with a projected shortfall of around 10M metric tons by 2040.

Copper supply is also being restricted due to declining ore grades and higher mining costs. Other than that, the fact that new copper mines can take many years to develop is also playing a leading role in limiting its supply dynamics. S&P Global says it takes about 17 years on average for a copper discovery to move from discovery to production.

At the same time, S&P highlights copper concentrate constraints alongside regional inventory shifts that are also supporting elevated copper prices.

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Copper Demand Keeps Rising

With the advent of AI, copper demand has now risen to new highs. Copper is an essential metal required in multiple industries, including data centers, computing, electrification, and automobiles. Industries like power grid expansion, renewable energy, and AI infrastructure also require copious amounts of copper to build their products.

In this process, experts like Oguz Orkan have emphasized the copper shortage looming over the market, stating how it may end up transforming copper into a super-cycle asset.

S&P data estimates that global data center capacity could reach nearly 550 gigawatts by 2040. This type of expansion may require huge amounts of copper, adding more pressure on the metal.

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