Copper has surged to fresh record highs this year, with London Metal Exchange (LME) prices climbing above $12,000 per metric ton, marking an impressive ~42% year-to-date gain, as a powerful structural shift takes hold in the market. While the initial rally was supported by short-term factors such as U.S. tariffs, a weaker dollar, and inventory stockpiling, the deeper driver is a long-term surge in demand fueled by electrification, grid expansion, and digital infrastructure, prompting many investors to view copper as entering a potential “supercycle.”
A major catalyst behind this demand upgrade is the rapid expansion of AI data centers, which require significant amounts of copper for high-capacity wiring, transformers, and advanced cooling systems; industry experts at Wood Mackenzie describe this demand as highly inelastic, meaning developers are often willing to pay higher prices to secure supply since copper represents a small share of overall project costs. In its Horizons report published in October 2025, Wood Mackenzie estimates global copper demand could increase 24% by 2035, with AI playing a central role, and notes that sudden waves of data-center construction can drive copper price spikes of 15% or more, while AI-related power needs could add around 2,200 TWh of electricity demand by 2035, further strengthening the case for copper-intensive power infrastructure.
Beyond AI, copper demand is also being lifted by transport electrification, grid modernization, energy-transition investments, and infrastructure resilience initiatives, while supply remains constrained, with the industry needing roughly 8 million tons of new mine capacity and 3.5 million tons of additional scrap to meet future needs; ongoing challenges such as disruptions at Grasberg in Indonesia and declining ore grades in Chile have already led JP Morgan to project a ~330,000-ton copper deficit in 2026.
Price outlooks for 2026 vary but remain constructive, with J.P. Morgan forecasting average LME copper prices of $12,500 per ton in Q2 2026 and about $12,075 per ton for the full year, while Goldman Sachs expects a near-term pullback toward $10,710 per ton in the first half of 2026 and a $10,000–$11,000 full-year range, even as it projects prices could reach $15,000 per ton by 2035. For investors seeking diversified exposure rather than concentrated bets on individual miners, copper-focused ETFs offer an attractive route, including Global X Copper Miners ETF (COPX), iShares Copper and Metals Mining ETF (ICOP)—whose top holdings include Freeport-McMoRan (FCX), Anglo American (NGLOY), and BHP Group (BHP)—along with Sprott Copper Miners ETF (COPP) and the United States Copper ETF (CPER), which tracks copper futures rather than mining stocks.
