QNB predicts rising copper prices amid supply shortage
Qatar National Bank (QNB) expects copper prices to continue rising in the near future, driven by increased global demand for the metal due to the shift to clean energy and the expansion of infrastructure related to artificial intelligence. Despite structural supply constraints that limit its ability to meet the anticipated growth, the report notes that current prices, which have surpassed $6.20 per pound, are still below historical levels seen since 2008. This suggests a likelihood of further increases as the supply-demand gap widens due to slow growth in production and the development of new mining projects. The report also confirms that key demand drivers include the energy transition, upgrades to electrical grids, infrastructure for charging electric vehicles, as well as rising demand from data centers and AI infrastructure. Meanwhile, supply remains limited due to a lack of new investments and current mining production challenges, which could lead to a widening supply gap and higher prices in the long term.
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