For copper, 2025 is the best year since 2009. The rally is record-breaking thanks to increased demand and artificial intelligence. But what are the forecasts for 2026?
Copper is about to close out one of the strongest years in its recent history, approaching its largest annual gain in 15 years. A combination of factors is supporting the red metal’s rally, including supply disruptions, a weakening US dollar, more favorable expectations for China’s economic growth, and, above all, the enormous surge in investment linked to the development of artificial intelligence (AI) and digital infrastructure.
The bullish momentum may not end anytime soon. The forecasts for 2026 remain upwardly oriented, driven by structural supply constraints and the accelerated expansion of data centers globally, which are becoming a major driver of demand for industrial metals.
Copper price soars
In recent sessions, three-month copper futures on the London Metal Exchange (LME) reached a high of $12,960 per ton before retracing slightly to $12,566. On an annual basis, the benchmark contract is up about 41%, its best performance since 2009, when copper surged more than 140% following the global financial crisis.
The trend in New York is equally significant. Since the beginning of 2025, prices have risen more than 40%, the best annual result since 2009, when the increase exceeded 137%. These figures confirm that copper has returned to the spotlight among global investors.
The reasons behind the rally
Traditionally considered a barometer of global economic health, copper plays a critical role in the energy transition. It is an indispensable material for the production of electric vehicles, power transmission grids, wind turbines, and all the infrastructure necessary for the electrification of the economy. Today, this is being further fueled by a powerful catalyst: the expansion of data centers linked to artificial intelligence, which require enormous quantities of copper for wiring, electrical systems, and cooling infrastructure.
Copper forecast for 2026
According to Ian Roper, commodity strategist at Astris Advisory Japan KK, the global artificial intelligence boom represents the latest and most powerful factor supporting prices. Markets, the analyst emphasizes, remain "very tight," and this condition could favor further increases in 2026. Roper notes that copper has particularly benefited from the energy transition in recent years, even at a time when the Chinese real estate crisis has weighed on other commodities such as steel and iron ore. "The development of renewables, electric vehicles, and now data centers represents a structural growth story for copper," he explained in an interview with CNBC.
A similar perspective also emerges from the analyses of JPMorgan. In a note released at the end of November, the American bank indicated that LME copper prices could have additional upside potential, with an expected average of around $12,500 per ton in the second quarter. According to the bank’s analysts, data center-related demand represents an "extremely significant" upside risk to prices. JPMorgan forecasts an average price of $12,075 during 2026 and emphasizes how the combination of fragmented inventories, persistent supply disruptions, and strong demand is creating the conditions for a structurally tight market.
More cautious views are also present. Some analysts caution against assuming a linear continuation of the rally, emphasizing that some of the positive developments are already priced in. In particular, Goldman Sachs Research predicts that, after reaching highs, copper could enter a consolidation phase. In a note published on December 11, the bank estimates that LME prices could range between $10,000 and $11,000 per ton in the medium term.
According to Goldman Sachs, growing demand for electricity infrastructure and networks—also supported by investments in artificial intelligence and the defense sector—should prevent prices from falling significantly below the $10,000 threshold. Analysts forecast an average price of $10,710 in the first half of 2026. Looking further ahead, the bank projects that copper could reach $15,000 by 2035, a target price higher than the market consensus but consistent with a scenario of structurally high long-term demand.
Original article published on Money.it Italy 2025-12-30 14:46:45. Original title: Non solo argento. Anche il prezzo del rame vola, ma fino a dove può arrivare? Le previsioni 2026
