Recently paying attention to the copper market, I found that this rally is indeed unusual. Copper is called "Dr. Copper" because it can reflect the health of the global economy, and 99% of its demand is industrial—electric vehicles, AI data centers, green energy grids all depend on it. Last year, copper prices surged over 50%, and this year they have entered a high-range oscillation, currently around $12,000 to $13,000 per ton.

After reviewing analysis from many institutions, major banks like JPMorgan, Goldman Sachs, and UBS are optimistic about copper prices rising 20% to 50% this year, with target prices ranging from $12,500 to $15,000 per ton. Their logic is clear: accelerating global electrification and explosive AI infrastructure, but supply cannot keep up. Major copper-producing countries like Chile and Peru face declining ore grades and social protests; new mine development cycles take 15 to 20 years, and in the past decade, mining giants have actually reduced investments. This mismatch of supply and demand is precisely the strongest support for copper prices.

Interestingly, this could be the fourth super cycle for copper. Looking back at history, copper has experienced three major bull markets in the past 100 years: the electrification cycle of the 1900s, post-war industrialization of the 1960s, and China’s urbanization in the 2000s, each with a 5 to 10 times increase. The current drivers are green energy and AI, with global copper demand forecasted to jump from the current 28 million tons to 42 million tons by 2040. Each electric vehicle uses about 83 kilograms of copper—four times that of traditional cars; AI data centers’ power needs are ten times that of ordinary centers, requiring massive copper cooling systems and power distribution infrastructure.

Of course, super cycles are not a straight upward trend. Even during China’s cycle from 2000 to 2011, copper prices halved in 2008, and 20-40% corrections along the way are common. In the short term, copper prices are still influenced by tariffs and interest rate expectations; the strength of the dollar and the Fed’s rate cut pace will impact it. But from a medium- to long-term perspective, the demand driven by green energy transformation and AI infrastructure is certain, which is why more and more people are entering now.

For Taiwanese investors, the international copper markets mainly trade on the London Metal Exchange (LME) and the New York Mercantile Exchange (COMEX). While watching Taiwan’s copper price charts, it’s also important to follow these international markets. Those interested in participating in the copper market have several options: futures are suitable for experienced investors, allowing long and short positions with leverage, but they have high barriers and complex operations; copper CFDs are more friendly for small investors, with low margin, no expiration date, and 24-hour trading, offering more flexibility to respond to market volatility; there are also copper-related ETFs and mining company stocks, suitable for those who prefer long-term holding.

Honestly, the copper market does have opportunities now, but risks must also be acknowledged. If the global economy slows down or alternative materials breakthrough, infrastructure projects get delayed, copper prices could quickly retreat after breaking new highs. However, as long as electrification and AI waves continue to accelerate, the structural demand for copper remains. Recently, I’ve been looking at various trading platforms’ copper products, planning to try small amounts—participating now costs much less than before.