The global copper market is experiencing one of its most active phases in decades, as prices have surged to unprecedented levels, pushing the price per ton above $12,000 - the highest level ever recorded for the metal known as “red gold.”

This remarkable rise is not occurring in isolation from global economic shifts. Rather, it reflects deep changes in the structure of supply and demand amid a fast-paced international race toward clean energy and advanced technology.

Industry backbone
Copper is one of the strategic metals at the heart of electrical and electronic industries and infrastructure projects, making it a key indicator of global economic health.

The rapid expansion of renewable energy projects, electric vehicle manufacturing, artificial intelligence applications, and the massive growth of data centers has driven global demand for the metal to unprecedented levels, at a time when supply has struggled to keep pace.

Supply challenges
On the supply side, the market faces mounting challenges, most notably declining output from aging mines, rising exploration costs, and difficulties in developing new projects under stricter environmental and regulatory requirements.

Supply chain disruptions and operational problems in several producing countries have also deepened the supply gap, reinforcing upward pressure on prices.

These record copper levels are affecting a wide range of industrial sectors by increasing production costs and adding pressure on basic metals markets, prompting many companies and countries to reassess their sourcing and stockpiling strategies in anticipation of further price hikes.

Global banks’ forecasts
In this context, forecasts from several global banks indicate that the copper market is heading toward a phase of structural supply imbalance. Morgan Stanley expects the largest supply deficit in 22 years to occur in 2026 due to ongoing supply disruptions and growing demand linked to artificial intelligence.

The gap between supply and demand is also expected to widen through the end of the decade, raising warnings of a looming global shortage in basic metals markets.

Citibank expects copper prices to continue rising, with the possibility of the price per ton reaching $14,000, supported by an anticipated rebound in demand in 2026, alongside easier U.S. financial policies, stronger global industrial activity, and sustained demand from the electricity, renewable energy, electric vehicle, and infrastructure sectors.

UBS also forecasts higher copper prices in 2026, citing tight supply caused by frequent mine outages and strong long-term demand.

Continuous rise
Commenting on these developments, economic expert Hanan Ramsis told Annahar that copper prices are expected to continue rising in 2026 amid a severe supply shortage, production disruptions at several mines, and accelerating global demand.

She noted that the growing use of copper in artificial intelligence and green energy industries is placing additional pressure on the market, particularly as major industrial countries - led by China - seek to build up strategic stocks to secure production and export needs.

Ramsis added that political constraints and operational challenges in several producing countries are slowing any recovery in output, pushing prices to successive record highs. She expects the upward trend to continue until a real balance between supply and demand is restored - something that does not appear imminent.

Against this backdrop, copper is cementing its position as one of the most strategic metals in the new global economy, driven by the twin transformations of energy and technology.