Bulls jump deeper into copper amid supply challenges, AI-fueled demand

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Copper's bull run is expected to continue for at least the next three years due to global supply challenges and high demand for the metal in energy transition and artificial intelligence technologies. The CRU World Copper Conference in Santiago, Chile, is expected to focus on these themes. Data centers for AI servers are projected to require an additional 1 million metric tons of copper by 2030, and electric vehicles are also driving demand. Citi analyst Maximilian Layton expects demand to outstrip supply by 1 million metric tons in the next three years, with prices potentially reaching $12,000 per metric ton by December 2026. However, production struggles by various companies and electricity supply challenges in Zambia are impacting supply. Citi has reduced its forecast for global copper supply this year to a 0.7% increase. Notable setbacks include the closure of First Quantum's Cobre Panama mine and regulatory uncertainty in Chile affecting Codelco's production. Despite these challenges, the investment climate in Chile has improved.

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https://finance.yahoo.com/news/bulls-jump-deeper-copper-amid-110608029.html