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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid the accelerating shift toward energy-intensive technologies, copper is emerging as a critical element facing a widening gap between supply and demand. Veteran investor Rick Rule predicts an inevitable copper shortage and significant price increases driven by staggering demand from the AI sector and data centers. An S&P Global study indicates that global demand for the red metal could reach 42 million metric tons by 2040, while copper futures on the New York Mercantile Exchange settled at $6.20 per pound on June 28.
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Sign InThese forecasts arrive at a time when the market is struggling with a lack of new mining development projects, particularly in the United States, reinforcing fears of a long-term structural deficit. Compared to other industrial metals, copper faces unique pressures due to its dual role in AI infrastructure and electric vehicles; per market data, copper's long-term outlook outperforms aluminum and nickel, which currently face relative supply surpluses. According to Goldman Sachs reports, the supply gap could begin to widen significantly by 2025 as production slows at major mines in Chile and Peru.
Traders should monitor current price levels, with copper settling at $6.20 per pound (close June 28, 2026) amid anticipation of macroeconomic data that could impact risk appetite. Looking at the economic calendar, the market awaits the Michigan Consumer Sentiment index on June 26, alongside speeches from Fed officials such as Williams and Kashkari, which may provide signals on interest rate paths and their impact on financing costs for major mining projects.