The copper price reaches two-decade highs driven by technological demand

In the context of accelerated digital transformation, copper prices have reached their highest level in two decades, with stockpiles totaling 1.02 million tons distributed across Comex, the Shanghai Futures Exchange, and the London Metal Exchange. This phenomenon reflects the dynamics of the global market where supply is pressured by increasing demand from key sectors.

Record Reserves: A Reflection of Lingering Shortages?

Historical high inventories may seem paradoxical amid constant demand. However, analysts point out that this behavior is typical in economic transition cycles. Red metal is essential for next-generation infrastructure, from power distribution systems to semiconductor components.

Emerging Sectors Accelerate Copper Demand

Electric vehicles, data centers, and industrial applications related to artificial intelligence have become pillars of global demand for the metal. An electric vehicle requires approximately three times more copper than a conventional car, while a data center demands significant amounts for cooling and power distribution. These sectors explain the continued strength of copper prices despite high stockpiles.

Wall Street’s Bullish Predictions

Major Wall Street banks project a bullish outlook for the coming periods, estimating copper prices could range between $10,000 and nearly $13,000 per ton. These projections reflect confidence in sustained technological demand and the potential shortfall in supply in the medium term, reinforcing optimistic prospects for the red metal in global markets.