Copper inventories on global exchanges reach a 23-year high amid rising demand

SerumSquirrel · 2026-02-27T02:08:21+00:00

The current red metal market shows a fundamental imbalance between supply and demand, with copper inventories at a peak of 1.02 million tons. Increased consumption is driven by electrification of transport and AI infrastructure, leading to a structural deficit. Investment banks predict copper prices could rise significantly, reflecting confidence in the demand outpacing supply.

SerumSquirrel

2026-02-27 02:08:21

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The current situation in the red metal market reflects a fundamental imbalance between supply and demand. Copper inventories at major trading platforms—Comex, the Shanghai Commodity Exchange, and the London Metal Exchange—accumulate to 1.02 million tons, reaching a two-and-a-quarter-decade high. This figure vividly indicates that industry is absorbing copper at levels not seen since the early 2000s.

Demand Transformation: Why Copper Has Become Critically Important

The reasons for the exponential growth in copper consumption lie in key global economic trends. The electrification of transportation, accelerated by widespread adoption of electric vehicles, requires significantly more copper components than traditional internal combustion engines. At the same time, artificial intelligence infrastructure—large data centers, servers, and cooling systems—impose unprecedented demands on conductive materials.

According to analytical platforms including NS3.AI, this converging demand from several high-tech sectors is creating a structural shortage in the coming years, despite current excess inventories. Industrial applications related to digitalization and automation also intensify competition for copper resources.

Price Dynamics and Financial Sector Forecasts

Leading Wall Street investment banks express an optimistic outlook on copper prospects. Analysts forecast that the price of this red metal will rise to between $10,000 and nearly $13,000 per ton. Such estimates reflect the confidence of financial institutions that current copper stocks are rapidly depleting under the pressure of rising demand, and prices are poised for a significant jump.

This revaluation of copper prices is becoming increasingly likely as AI and renewable energy sectors expand their investments in infrastructure.

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