AI and Defense Spending Drive Copper "Super Cycle"

Published: Mar 23, 2026 14:57

Save

Morgan Stanley highlight that the race for AI and growing defense spending are becoming primary drivers for copper demand. Global AI data centers alone are projected to consume 740,000 tonnes of copper in 2026 (approx. 2.1% of total demand). The research warns that with mine development timelines extending to 18 years, the world could face a 10 million metric ton supply deficit by 2040, even if recycled copper scrap production more than doubles.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

7 mins ago

Copper Faces Short-Term Surplus but Long-Term Deficit Outlook

The copper market is increasingly split between short-term surplus and long-term deficit expectations. Rising inventories and weak demand are weighing on prices now, but electrification trends still support a bullish long-term outlook, signaling a shift from scarcity-driven trading to fundamentals-driven correction.

7 mins ago

8 mins ago

Copper Pricing Disconnect Emerges Between Financial Flows and Fundamentals

Copper prices surged earlier in 2026 amid strong speculative inflows and rising futures positioning. However, physical demand has lagged, and inventories continue to build, creating a growing disconnect between financial pricing and real market fundamentals.

8 mins ago

47 mins ago

Jiangxi Copper Successfully Ignites Furnace for Full-Chain Solid Waste Utilization Project

At 10 a.m. on March 28, the side-blown furnace of Jiangxi Jiangtong Tongxin Environmental Protection Resource Comprehensive Utilization and Environmental Protection Equipment Manufacturing Phase II Project was successfully ignited, marking the full commissioning of Jiangxi Copper Group’s first full-chain project for solid waste resource utilization and environmental protection equipment manufacturing.

47 mins ago