Copper Emerges as a Macro Trade Amid Looming Supply Shortage
Copper prices are surging as demand from AI and electric vehicle sectors collides with a projected global supply deficit. The metal's scarcity could reshape commodity markets more dramatically than oil shortages, with Asia facing a 60% supply gap by 2040.
Market analysts warn of a 10 million tonne copper deficit within sixteen years—equivalent to one-third of current global consumption. This comes as annual demand is projected to jump 50% to 42 million tonnes, driven by grid upgrades and clean energy infrastructure.
The Kobeissi Letter's latest analysis suggests copper may follow Bitcoin's trajectory as a non-correlated macro asset. Unlike cryptocurrency, however, copper's physical scarcity creates tangible supply chain pressures that could accelerate price discovery.
