Copper is set for a historic shortage next year:
The copper market is expected to face its most severe deficit in 22 years in 2026, at -590,000 tons, according to Morgan Stanley.
The deficit is expected to widen by 2029 to a whopping -1.1 million tons.
This comes as global annual copper production is on course to contract for the first time since 2020.
Major production disruptions have impacted mines worldwide, with operational issues at several major mining sites exacerbating supply constraints.
At the same time, demand from AI data centers and electric vehicles is expected to outpace supply.
Copper miners have already struggled for years to keep pace with surging demand.
Higher copper prices are here to stay.