Copper prices are facing intensified upward momentum as expanding artificial intelligence infrastructure and operational disruptions at major mines strain worldwide metal inventories, according to Wall Street forecasts.
Three-month copper contracts on the London Metal Exchange reached a record peak of $14,875 per metric ton in September, Startup Fortune reported. The surge reflects growing pressure on physical supply chains, prompting several major financial institutions to raise their medium-term price expectations for the red metal.
Widening Deficits and Bullish Bank Targets
Investment bank UBS reported that it expects the global copper shortfall to widen significantly over the coming two years. The bank projects a supply deficit of 219,000 metric tons in 2026, which is anticipated to climb by 160,000 metric tons to reach 379,000 metric tons in 2027, according to Yahoo Finance UK.
On the back of that widening imbalance, UBS predicted that copper prices will push toward $15,500 per metric ton during 2027. The institution reiterated its guidance advising investors to maintain long positions, noting that short-term price dips should be treated as buying opportunities. Separately, Citi projected that copper could hit $15,000 per metric ton within a year, Startup Fortune reported.
The price momentum has also repositioned corporate balance sheets across the mining sector. BHP reported that its copper division generated more earnings than its iron ore operations for the first time in company history, according to Startup Fortune.
Artificial Intelligence Drives Massive Consumption
The acceleration in prices comes as technology companies allocate billions of dollars toward computing power and electrical network expansion. Single artificial intelligence data centers can require as much as 50,000 metric tons of copper each, Startup Fortune reported.
Commodities trader Trafigura projected that artificial intelligence and data center facilities could create up to one million metric tons of additional copper demand by 2030. Long-term projections from S&P Global suggest data-center copper requirements will rise from 1.1 million metric tons in 2025 to 2.5 million metric tons by 2040.
Jeff Currie, the former commodities research chief at Goldman Sachs who now co-chairs Abaxx Markets, stated on Bloomberg Surveillance that technology-driven demand is laying the groundwork for a broader commodity supercycle that might persist for a decade or longer. In its 2026 outlook, Goldman Sachs Research designated copper as its top long-term industrial metal pick, pointing to its central role in technology competition between the U.S. and China.
Mine Disruptions Constrain Output
While appetite from power grids and technology hardware escalates, producers are struggling to accelerate extraction. Production output at Chile’s largest mining operations has declined, and developing new greenfield mines would require sustained copper prices exceeding $20,000 per metric ton to justify capital expenditures, Startup Fortune reported.
Corporate guidance reflects those extraction challenges:
- Glencore revised its 2026 copper output forecast down to between 810,000 and 870,000 metric tons after setbacks at its Collahuasi facility in Chile.
- Freeport-McMoRan has pushed 2026 processing terms above the 2025 benchmark rate of $21.25.
Market observers note that while broader macroeconomic factors such as interest rates and currency fluctuations remain volatile, structural deficits appear poised to dictate copper trading for years to come as the physical buildout of digital infrastructure continues.
