“Copper Fever 2026 – Copper Soars into the AI Era: The Hottest Strategic Metal of the Decade as Supply Crunch Collides with Demand from AI & Green Energy”
Copper Supercycle 2026 – When Copper Becomes the Strategic Metal of the AI Era
Prices soaring to record highs amid severe shortages: All-Time High levels sustained in the upper price zone SO OK TRADING Article: May 25, 2026
Global Copper Prices Hit Historic Highs
On May 25, 2026, copper prices on the LME stood at $13,426 – $13,480/ton, while COMEX was around $14,183/ton. This equals approximately 490,000 – 520,000 THB/ton. Meanwhile, recycled copper scrap in Thailand traded at 380,000 – 412,000 THB/ton, leaving a wide gap of 92,000 THB/ton. This presents a golden opportunity for smelters and major traders to profit.
⚡ Key Drivers Behind Copper’s Price Surge
AI & Data Center Boom A single AI data center consumes up to 50,000 tons of copper, 3–4 times more than traditional cloud facilities.
Supply Shocks from Mines
Grasberg (Indonesia) and El Teniente (Chile) faced landslides and accidents.
Kamoa-Kakula (Congo) was hit by floods, halting production.
Underinvestment in Mining The world has not opened new copper mines for nearly 30 years, leaving production capacity far behind demand.
China’s Sulfuric Acid Export Ban Sulfuric acid, essential for copper smelting, was restricted, impacting 15% of global output.
Result Hundreds of thousands of tons of refined copper disappeared from the global market. Prices jumped from $10,000/ton at end-2025 to $14,000/ton today.
U.S. Stockpiling The U.S. rushed to import and store copper ahead of tariff adjustments, tightening global supply.
Clean Energy Transition EVs and high-voltage power grids require massive copper consumption.
Speculative Fund Inflows Over $14 billion poured into copper markets, fueling momentum.
Supply-Side Crisis (as of May 25, 2026)
Major Mine Disruptions Grasberg (Indonesia) and El Teniente (Chile) hit by landslides. Kamoa-Kakula (Congo) halted due to flooding.
Sulfuric Acid Shortages Hormuz Strait disruptions blocked shipments, lowering smelter output.
Delayed New Mine Projects No new mines in 30 years; expansion is slow and complex.
U.S. Stockpiling Q1/2026 saw massive imports into U.S. warehouses, tightening supply elsewhere.
China’s Export Ban Suspension of sulfuric acid exports (15% of global supply) worsened shortages in H2/2026.
The global copper supply is facing a “perfect storm”: mine shutdowns, smelter bottlenecks, lack of new investment, and U.S. hoarding. This has created the most severe supply crunch in decades.
Price Outlook for H2 2026
Base Case Prices hold at $12,500 – $13,800/ton, supported by AI and clean energy demand, despite China’s economic slowdown.
Bull Case Prices may break $15,000/ton if geopolitical crises erupt (e.g., Hormuz Strait blockade or new sanctions).
Institutional Forecasts
J.P. Morgan Q2 average $13,500/ton, easing to $12,500/ton in Q4.
Citi Strongly bullish: $13,000 – $15,000/ton, citing a 330,000-ton shortage.
Goldman Sachs Short-term $10,000 – $11,000/ton, but expects $15,000/ton by 2035.
Strategies for Copper Users & Traders
Buyers (Factories/Manufacturers) Hedge risks with futures contracts.
Sellers (Recyclers) Offload inventory at 390,000 – 410,000 THB/ton for excellent profit-taking.
✨ Summary
Copper is caught in a “tug-of-war” between genuine supply shortages from global mines and macroeconomic pressures from high oil prices and inflation. What’s undeniable is that the AI and clean energy era has transformed copper from a simple industrial metal into a strategic asset the world cannot live without.
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