Copper has long been an economic bellwether as the metal is widely used across industries, but soaring demand is making it a strategic bottleneck that threatens growth, according to S&P Global.
In a report published Thursday, researchers estimated demand for the metal will jump 50% from current levels to 42 million metric tons by 2040, while supply will shrink in the coming years.
The result will be a shortfall of 10 million tons that represents a “systemic risk for global industries, technological advancement and economic growth,” the report said.
Meanwhile, copper prices have surged to more than $13,000 per metric ton from just over $8,000 in April 2025, as President Donald Trump’s global tariffs and mining disruptions weighed on supplies. Prices for precious metals like gold, silver, palladium, and platinum, which also have industrial uses, have shot up in recently months as well.
The report highlights four key drivers of copper demand: core economic sectors, the transition to electrification, data centers powering the AI boom, and high-tech weapons.
