Economic Survey: Here’s why copper may continue to rise despite 50% run in the past year

The price of copper has been surging due to rising demand for data centres and AI amid tight supplies, according to the Economic Survey 2025-26. The survey said that the story of copper is one of a transition from a simple industrial metal to a critical “strategic chokepoint” in the global race for a low-carbon future.

Copper is becoming a highly price-volatile metal due to a number of factors. “These include a series of mine outages in Indonesia, the Congo, and Chile; rising concerns of a supply deficit in the medium to long term, given perpetually growing demand from the power sector and data centres across the world, and trade protectionist measures,” the Survey said. Copper prices have surged more than 54% in the domestic market to nearly Rs 1,268 per kg over the past year till January 29.

The Survey highlights that the global energy transition is no longer just a technological challenge; it is increasingly defined by the control of critical minerals. Copper, along with lithium and nickel, has moved from the sidelines of the commodities market to the centre of geopolitical competition. As the world shifts toward renewable energy and electric mobility, copper has become a “new strategic chokepoint” that influences energy security and industrial competitiveness.

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ccording to the World Bank’s Commodity Prices Outlook (October 2025), global commodity prices are expected to decline by approximately 7% in FY27, primarily driven by subdued crude oil prices amid oversupply. “Geopolitics may come in the way of this prediction. Prices of base metals, such as iron, copper, and aluminium, are expected to increase moderately. For instance, in copper, both demand pressures (especially given its usage for green technology and data centres) and supply disruptions might keep its price elevated,” the Economic Survey 2025-26 said.

It further added that the prices of precious metals, both gold and silver, are likely to continue increasing due to their sustained demand as safe-haven investments amid global uncertainties, unless a durable peace is established and trade wars are resolved. Silver was traded around Rs 3,84,632 per kg on the Multi Commodity Exchange at around 1:30 PM (IST) on January 29, 2026. On the other hand, the price of gold was around Rs 1,76,306 per 10 grams.

“Metals like lithium, cobalt, nickel, copper, and rare earth elements have become the new strategic chokepoints in shaping the contours of a low-carbon economy, influencing energy security, industrial competitiveness, and geopolitical power,” the Economic Survey said.

Meanwhile, shares of Hindustan Copper, country’s only government-owned copper producer, surged 20% to Rs 759.20 on Thursday. On the other hand, the benchmark NSE Nifty index traded 0.35% higher at 25,430 in the afternoon trade on January 29, 2026.