Recently, many people have been paying attention to precious metals markets, but the performance of another major commodity is equally impressive—copper.

This year, copper prices have increased by 43%, potentially setting a new annual record since 2009. More notably, there is pressure on the supply side: Morgan Stanley predicts that by 2026, global copper supply will face the most severe shortage in 22 years, with a gap expected to reach 590,000 tons.

Several key factors are behind this. The world's largest copper producer has seen its output fall to a low point not seen in over a decade. At the same time, structural issues in mining are becoming increasingly apparent—nearly half of the copper mines have been in operation for over 20 years, and since 1991, ore grades have declined by about 40%, directly increasing extraction costs and slowing capacity response. Mining companies have been struggling to cope with this trend for years.

On the demand side, however, a different picture emerges. The expansion of AI data center infrastructure and the rising penetration of electric vehicles have both driven strong demand for copper. The supply-demand imbalance is unlikely to be reversed in the short term, which also explains why the market generally expects copper prices to continue rising.