Copper prices are set to rise in 2026 due to a significant deficit in the market. Demand for copper is expected to surpass new supply, driven by the shift towards renewables, electric vehicles, and infrastructure upgrades globally. Analysts forecast a refined copper deficit of 150,000 to over 400,000 tons in 2026, leading to bullish price forecasts.

The main drivers of copper demand in 2026 include the electrification and energy transition globally, with significant demand from sectors such as electric vehicles, renewable energy, power grids, infrastructure, and data centers. Furthermore, a moderate pickup in global economic growth is expected, adding to the demand for copper. Supply constraints, including declining ore grades and operational disruptions, are expected to exacerbate the supply deficit.

The technical analysis of the copper market shows an uptrend in copper futures, with prices setting multiple new contract highs. Seasonal analysis indicates a historical seasonal low around mid-August, with a seasonal window for a significant upmove in copper prices. Traders can participate in the copper market using CME products such as standard copper futures, micro copper futures, and options on copper futures.

In conclusion, the copper market is facing a clear supply deficit in 2026, with demand outpacing new production. The bullish case for copper prices is supported by technical and seasonal factors, with strong demand from various sectors and supply constraints contributing to higher prices. Traders can consider participating in the market using different CME products, but must conduct their own research and manage risk effectively.

Read more at Barchart: Fundamentals, Trend, Correlation, and a Proven Nov-Feb Seasonal Play