Copper Market Forecast for Continued Strength Amid AI Boom and Supply Shortages

The copper market is expected to remain strong due to surging demand driven by AI and data center expansion, coupled with ongoing supply shortages. The Democratic Republic of Congo (DRC) is highlighted as a key region for high-grade copper.

Mon Jun 01 2026

Deepening Copper Market Supply Shortages

Andrew Groves, Chairman at Copper Intelligence, recently analyzed that the copper market is facing a supply deficit. Over the past 10-20 years, a lack of investment in mining has led to sluggish discovery of new mineral deposits, and existing mines, particularly in South America, are experiencing declining ore grades. In some Chilean mines, copper grades are as low as 0.7-0.9%, requiring over 100 tons of ore to produce just one ton of copper. This drives up production costs, including fuel and labor, contributing to upward pressure on copper prices.

Surging Demand from AI and Data Centers

Conversely, the rapid advancement of Artificial Intelligence (AI) technology and the construction of hyperscale data centers are fueling an explosive increase in copper demand. Mr. Groves noted that each hyperscale data center requires approximately 50,000 tons of copper, indicating that global AI infrastructure expansion will further escalate copper demand. Currently, demand exceeds supply, with an anticipated shortfall of 300,000-400,000 tons of copper this year. While some banks forecast copper prices at $13,800 per ton by year-end, Mr. Groves personally predicts prices will exceed $15,000.

Democratic Republic of Congo (DRC)'s Potential

Andrew Groves emphasized the significant potential of the Democratic Republic of Congo (DRC) as a crucial copper supplier. The DRC has many underexplored mines and boasts high-grade copper deposits, with average copper grades ranging from 2-4%, and some areas reaching 6%. This makes production more economical compared to other regions, as less ore is needed to yield the same amount of copper. Under the stable leadership of President Félix Tshisekedi's government, road and infrastructure investments are active. Last year, the DRC's mineral exports reached an all-time high of over $32 billion, and this year it is expected to exceed $50 billion, indicating that the DRC will grow into a key region for future copper supply.

*Source: YouTube: Bloomberg (2026-06-01)*

Tags: #copper #AI #data-centers #supply-chain #DRC #tech