Copper Market Crisis Looms: 2026 Set for Biggest Shortage in 22 Years
The copper market is facing an unprecedented supply crunch, with analysts predicting the most severe deficit since 2004. Morgan Stanley forecasts a shortfall of 590,000 tonnes in 2026, potentially escalating to 1.1 million tonnes by 2029. Market disruptions have severely constrained production and distribution channels.
Industrial demand, particularly from AI data centers and power infrastructure, continues to outstrip supply. This imbalance is expected to drive copper prices to record highs as scarcity becomes a defining market narrative. The Kobeissi Letter notes the metal's critical role in technological applications is compounding the supply-demand imbalance.