The surge in Copper prices is being fuelled by a magnitude of bullish macro tailwinds including a global supply crunch due to mine closures and red-hot demand for the metal to power energy transition and artificial intelligence technologies.
Copper, one of the best electrical-conducting metals, is already used worldwide in motors, batteries and wiring – nicknamed “Dr. Copper” because demand for it is widely seen as a barometer for global economic health.
In their latest research report, analysts at GSC Commodity Intelligence estimated – data centers to power AI servers will require an additional 1 million metric tons of Copper over the next three years. The report went on to say that global data center energy consumption reached 382 TWh in 2022, with a forecast to exceed 803 TWh by 2027. Put another way, 382 TWh is equivalent to France’s annual electricity consumption.
In addition, new demand is also forecast to come from electric vehicles, which are built with four times more Copper than vehicles with internal combustion engines.
Overall, as demand surges and the world needs more Copper and lots of it fast – there’s one big problem.
Commodities Price Forecast
Global supply is shrinking at a record pace off the back of a “triple deficit” – low inventories, low spare capacity and low investment.
