So, why are copper prices rising?
US tariff fears: Expectations that US President Donald Trump could expand tariffs on imports of refined copper have encouraged traders to move large quantities of the metal into the US. Around 885,000 tonnes of copper were imported by the country during the first half of 2026.
US inventories surge: Copper stocks held in Comex warehouses have climbed to a record 675,000 tonnes as traders seek to take advantage of potentially higher US prices. This has resulted in a sharp concentration of global inventories in the US, while stocks in the LME network have declined.
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Supply struggling to keep pace: The copper market faces a longer-term supply-demand imbalance. Ageing large-scale mines are struggling to increase output fast enough to meet rising consumption, while several major producers have faced operational challenges.
Chile’s copper shipments, for instance, fell to their lowest level in more than a year in August despite the sharp increase in prices.
AI and data centres: The rapid expansion of artificial intelligence infrastructure is creating additional demand for copper. Data centres use the metal in power systems, cooling infrastructure and network equipment.
Power grids and renewable energy: Global investments in electricity transmission and distribution networks, renewable energy projects and battery storage are also supporting copper demand as economies expand electrification.
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Electric vehicles: EVs require significantly more copper than conventional internal combustion engine vehicles, with industry estimates suggesting they use roughly six times as much copper.
Prices have outrun forecasts: The rally has also taken copper well above earlier analyst expectations. Goldman Sachs had forecast copper at $11,200 per tonne for the fourth quarter of 2026, while Deutsche Bank had expected an average price of $12,125 per tonne for the year.
For major miners such as Rio Tinto, BHP, Glencore and Zijin Mining, higher copper prices have provided a significant boost to earnings.
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