'Copper is set to explode': Supply shortages and the case for a multi-year rally
The copper market is expected to see a deficit of 124,000 tons this year and 150,000 tons next year, according to Reuters
- Dec 22, 2025,
- Updated Dec 22, 2025 4:32 PM IST
Often seen as a steady, cyclical industrial metal, copper is now being pitched as the next big trade.
On Monday, Rakesh Bansal, founder of RKB Ventures, argued that supply constraints and demand from AI, electrification, EVs and the energy transition could push copper into what he calls a fresh multi-year run.
"COPPER is the NEW KING that's about to EXPLODE! Supply shortages + AI data centres + EVs + green energy boom = Copper prices set to rally beyond imagination. Now it's Copper's turn to make millionaires," he wrote on X.
Bansal doubled down in a conversation with Business Today, linking the rally call to what he sees as a structural surge in electricity use - and the metal's central role in wiring, grids and industrial build-outs.
"Aluminium and copper both have breakouts. We will see a rally in both. Now, aluminium and copper are used in electrification. AI is booming. Now, in India, all these data centers are coming up. All this boom is not possible without copper. And there is a supply shortage. Even in India, only one player is there for copper, and that is Hindustan Copper. There is a shortage of supply," the analyst said.
"Look beyond AI, power infrastructure is also not possible without copper," he added. "I believe that just like gold and silver, copper is also a safe haven because here the demand is real. There is a massive demand from industries. Copper, to me, is an underrated asset whose multi-year bull super cycle has just started."
Copper is needed in EVs as well, Bansal said, adding that the supply is limited. "If you want to open a copper mine, it is not that you will take out copper today. Mining is one thing where nothing happens overnight."
The bullishness around copper has also been building in global market commentary. Reuters reported on December 12 that copper was closing in on the $12,000 a metric ton mark due to expectations of soaring demand from data centres that power artificial intelligence, and tight supplies.
The report noted copper's role in power grids that feed data centres, electric vehicles and the infrastructure needed for the energy transition. Copper prices are up 35% so far this year and are heading for their largest gain since 2009, it added.
Earlier, a Reuters survey of analysts said the copper market is expected to see a deficit of 124,000 tons this year and 150,000 tons next year. Demand growth, the report said, is being pushed by billions of dollars being invested globally to modernise and expand power grids, while data centres and clean energy require vast amounts of electricity. It also pointed to the energy transition - including wind and solar - as another key driver expected to lift demand.
Macquarie, an investment banking firm, expects global copper demand at 27 million tons this year, up 2.7% from 2024, with demand in China rising 3.7%. It forecasts global demand growth outside China at 3% next year.
Often seen as a steady, cyclical industrial metal, copper is now being pitched as the next big trade.
On Monday, Rakesh Bansal, founder of RKB Ventures, argued that supply constraints and demand from AI, electrification, EVs and the energy transition could push copper into what he calls a fresh multi-year run.
"COPPER is the NEW KING that's about to EXPLODE! Supply shortages + AI data centres + EVs + green energy boom = Copper prices set to rally beyond imagination. Now it's Copper's turn to make millionaires," he wrote on X.
Bansal doubled down in a conversation with Business Today, linking the rally call to what he sees as a structural surge in electricity use - and the metal's central role in wiring, grids and industrial build-outs.
"Aluminium and copper both have breakouts. We will see a rally in both. Now, aluminium and copper are used in electrification. AI is booming. Now, in India, all these data centers are coming up. All this boom is not possible without copper. And there is a supply shortage. Even in India, only one player is there for copper, and that is Hindustan Copper. There is a shortage of supply," the analyst said.
"Look beyond AI, power infrastructure is also not possible without copper," he added. "I believe that just like gold and silver, copper is also a safe haven because here the demand is real. There is a massive demand from industries. Copper, to me, is an underrated asset whose multi-year bull super cycle has just started."
Copper is needed in EVs as well, Bansal said, adding that the supply is limited. "If you want to open a copper mine, it is not that you will take out copper today. Mining is one thing where nothing happens overnight."
The bullishness around copper has also been building in global market commentary. Reuters reported on December 12 that copper was closing in on the $12,000 a metric ton mark due to expectations of soaring demand from data centres that power artificial intelligence, and tight supplies.
The report noted copper's role in power grids that feed data centres, electric vehicles and the infrastructure needed for the energy transition. Copper prices are up 35% so far this year and are heading for their largest gain since 2009, it added.
Earlier, a Reuters survey of analysts said the copper market is expected to see a deficit of 124,000 tons this year and 150,000 tons next year. Demand growth, the report said, is being pushed by billions of dollars being invested globally to modernise and expand power grids, while data centres and clean energy require vast amounts of electricity. It also pointed to the energy transition - including wind and solar - as another key driver expected to lift demand.
Macquarie, an investment banking firm, expects global copper demand at 27 million tons this year, up 2.7% from 2024, with demand in China rising 3.7%. It forecasts global demand growth outside China at 3% next year.