The global demand for copper has seen significant fluctuations in recent years, influenced by various economic, technological, and geopolitical factors. As we move through 2024, several key trends and projections are shaping the outlook for this critical metal.
Drivers of Copper Demand
- Green Energy Transition: One of the primary drivers of increased copper demand is the global shift towards renewable energy and electric vehicles (EVs). Copper’s excellent conductivity makes it indispensable in the manufacturing of solar panels, wind turbines, and EVs. The International Copper Association predicts that the transition to cleaner energy sources will boost copper demand significantly, potentially doubling by 2035 to reach 50 million metric tons.
- Artificial Intelligence (AI) and Data Centers: The rise of AI and the subsequent need for data centers are also accelerating copper consumption. Data centers require substantial amounts of copper for wiring and cooling systems, with forecasts suggesting an additional demand increase of one million metric tons by 2030 due to AI-related developments.
- Infrastructure and Industrial Use: Continued urbanization and infrastructure projects, particularly in developing countries, contribute to steady demand for copper. The construction industry, in particular, remains a significant consumer of copper for electrical wiring and plumbing.
Bank of America projects that copper prices could rise to $5.44 per pound by 2026, reflecting a continued upward trend driven by persistent demand and potential supply constraints.
The demand for copper is poised to remain strong, underpinned by the global energy transition, technological advancements, and ongoing infrastructure developments. However, the market must navigate supply-side challenges and geopolitical uncertainties that could influence price stability and availability. As the world continues to shift towards more sustainable and technologically advanced systems, copper’s role as a fundamental resource will only become more critical.
Jubilee Metals Group plc (LON:JLP) is a diversified metal recovery business with a world-class portfolio of projects in South Africa and Zambia. The Company’s expanding multi-project portfolio across South Africa and Zambia provides exposure to a broad commodity basket including Platinum Group Metals, chrome, lead, zinc, vanadium, copper and cobalt.
