Copper could hit ‘stratospheric new highs’ as hoarding of the metal in U.S. continues

Copper prices have soared this year, hitting multiple record highs, fueled by supply disruptions and as fears over U.S. tariffs have led to a surge in demand. The rally is set to continue into 2026.

Citi analysts expect prices of the red metal to skyrocket on the back of stronger demand led by the energy transition and artificial intelligence sectors. Electrification, grid expansion and data-center build-outs require large amounts of the metal for wiring, power transmission and cooling infrastructure.

According to Citi, projected copper deficits due to constrained mine supply and continued “hoarding” of copper in the U.S. due to arbitrage opportunities are expected to contribute to price surges: “We expect the U.S. to hoard global copper inventory and, in a bull case, draw further on depleted ex-U.S. stock.“

The brokerage sees copper hitting $13,000 per ton in early 2026, and even $15,000 by the second quarter of next year.

Similarly, Avatar Commodities CEO Andrew Glass sees copper prices hitting “stratospheric new highs,” especially as physical hoarding in the U.S. continues to erode international availability.

The current rally reflects a “highly irregular distortion,” driven primarily by anticipation of tariffs rather than traditional supply-demand fundamentals, he said, adding that Chinese copper demand has disappointed in recent months.

ING’s commodities strategist Ewa Manthey, who expects prices to go up to $12,000 per ton in the second quarter of next year, said that higher copper prices are set to squeeze margins in energy-intensive sectors.

Spot prices of the red metal, which is seen as a leading indicator for the health of the global economy, hit another high on Friday at $11,816 per ton on the London Metals Exchange, with 3-month futures closing at $11,515.