Copper hits 16-year high due to surge in green energy demand

Copper prices soared by 47% in the past year. The London Metal Exchange (LME) copper price reached a record US$13,285/ton yesterday (January 7). The surge was due to the urgent need for wiring in electric vehicles, AI data centers, and renewable energy grids. Unlike traditional industrial metals slowed by China's weak property market, copper now acts as a vital strategic resource. Supply cannot keep pace with this electrification trend. The global copper demand is expected to grow by 3% in 2026, but refined copper production will only increase by 1% this year. Analysts at UBS foresee a persistent shortage of up to 400,000 tons. As the US government evaluates new tariffs on refined copper, its role in the global energy transition cements its position as the top-performing industrial metal.