Copper prices have reached a historic high—over $12,000 per ton. Over the past year, copper prices have risen by 30%, marking the largest annual increase since 2009. Several coinciding factors have fueled this record growth.
Production disruptions were a major catalyst. Significant accidents at the Grasberg mine in Indonesia, as well as incidents in Chile and Congo, sharply reduced output. This global supply shortage was further tightened when the US imposed higher tariffs on copper products, prompting arbitrage and a shift of physical metal toward the American market. As a result, regional shortages outside the US increased even further.
Another major driver is the structural increase in demand from artificial intelligence companies and data centers, electric vehicles, and renewable energy. A single modern data center now consumes thousands of tons of copper annually. Electric cars and green energy projects similarly boost copper demand, while lengthy investment cycles hinder the opening of new mines.
A telling sign of shortage is the zero processing fees agreed by Chilean and Chinese firms for copper concentrate—pointing to a critical lack of raw material for smelters and a risk of further refined copper output declines.
Most analysts expect new price records into 2026, although part of the rally is attributed to financial speculation. For consumers, this may mean higher prices for electronics, household appliances, construction materials, and a spike in copper theft. Structural deficit remains the main long-term market driver.
