Recently looking at copper market trends, I found a very interesting phenomenon—this rally is not just speculation, but a real supply and demand imbalance is happening.

Since 2025 until now, copper prices have risen over 50%, and the current price per kilogram is fluctuating around $12 to $13. Everyone is asking if it can go higher in 2026. My observation is, this is just the beginning of the story.

Why do I say that? Because copper is not mainly a safe-haven asset like gold; 99% of it is driven by industrial demand. Electric vehicles, AI data centers, green energy grids— the global electrification wave is here, and the demand curve is almost vertical. But what about supply? It simply cannot keep up. Chile, Peru— major copper-producing countries— face strikes and declining ore grades. New mines take 15 to 20 years to develop, and since 2011, almost no large new mines have come online. This mismatch of supply and demand is the strongest support for higher prices.

How do institutions view this? JP Morgan estimates an average of $12,500 per ton in 2026, while Goldman Sachs is more aggressive, predicting it could reach $15,000 within 12 months. UBS also believes the supply gap could exceed 400k tons. The logic behind these forecasts is simple— the green energy transition is ongoing, AI infrastructure is accelerating, each electric vehicle uses about 83 kg of copper, four times that of traditional fuel cars, and AI data centers consume ten times the power of ordinary data centers. This means massive amounts of copper cooling systems and electrical distribution infrastructure are needed.

Looking at the long-term, you’ll notice copper has memory. Over the past 100 years, copper has experienced three supercycles— the electrification cycle of the early 1900s, post-war industrialization in the 1960s, and China’s urbanization in the 2000s— each time rising 5 to 10 times. We are very likely at the start of the fourth supercycle, driven by green energy and AI.

But note, supercycles are not straight upward lines. Even during the strongest China cycle from 2000 to 2011, copper prices were halved in 2008. 20-40% corrections are common, and these are actually opportunities to add positions. In the short term, if copper drops back to around $11,000, that would be an excellent entry point.

How to invest? Futures have high thresholds and are complex to operate, not very suitable for beginners. I recommend using copper CFDs, which require lower margin, have no expiration date, and can be traded 24/5, providing flexibility to respond to various risks. Platforms like Mitrade offer good copper CFD products, with demo accounts to practice first.

Ultimately, copper is like a barometer of the global economy. The current rally is driven by genuine demand explosion. Whether in 2026 or the years after, there’s still a lot of room for copper prices to rise per kilogram. Of course, investing involves risks, so always think carefully about your risk tolerance before making any decisions.