Copper Crisis Alert: 2026 Faces Worst Shortage in Over Two Decades
The copper market is barreling toward a cliff—2026 will see the tightest squeeze since 2004. Forget 'supply chain hiccups'—this is a full-blown deficit screaming for attention.
Why it matters: Copper isn't just wiring and pipes. It's the bloodstream of electrification, renewables, and yes, even your overpriced EV. No copper? No energy transition.
The numbers don't lie: 22 years. That's how long it's been since the market faced this level of scarcity. Mines can't magically appear, and recycling won't plug the gap. Cue the Wall Street analysts suddenly pretending they 'always believed in commodities.'
Bottom line: When the 'everything metal' runs low, prices won't just spike—they'll pole vault. Maybe time to rethink those 'paper copper' ETF bets, huh?
Copper Deficit Widening: What’s Happening
As per the latest report by the Kobeissi letter, the copper market is expected to encounter one of its worst deficit spells next year. Morgan Stanley predicts that copper shortage will be one of the leading issues of 2026, widening by nearly -590,000 tonnes.
Moreover, this deficit may widen by 1.1 million by 2029, adding more pressure on the copper market.
Citing issues such as major market disruptions, MG stated that this has been the primary cause for the copper supply crunch, skewing the metal’s output and delivery.
Copper Price to Hit New Highs?
The Kobeissi letter later shared how copper price demand is significantly rising, as data powers and AI centers require copper to execute operations smoothly. This scenario could potentially end up strengthening copper prices, with the rarity factor weighing heavily on its price narratives.
