Copper now stands at the centre of a major transformation. The energy transition, the rapid expansion of digitalisation and the growth of artificial intelligence have turned it into one of the main bottlenecks of global development.
For decades, copper was regarded as a standard industrial material, mainly used in construction, traditional electrical systems, household appliances and industrial machinery.
Many analysts referred to it as the “barometer of the economy” because of its close relationship with macroeconomic cycles: when manufacturing activity expanded, copper prices tended to rise; when the economy slowed, copper prices generally declined.
Before 2015, demand for the metal was considered relatively stable and largely followed economic cycles. Supply was also comparatively abundant, supported by younger, higher-grade mines and a well-established supply chain. This was a very different environment from the one we see today.
Copper now stands at the centre of a major transformation. The energy transition, the rapid expansion of digitalisation and the growth of artificial intelligence have turned it into one of the main bottlenecks of global development.
According to several analyses published between 2025 and 2026, copper is becoming one of the most critical raw materials of the century, because almost everything that is electric, digital, intelligent or low-carbon requires copper.
Until the 2010s, copper largely followed global economic cycles and was viewed as a simple “barometer of the economy”. It was mainly used in construction, household appliances and mechanical engineering, as highlighted in a detailed analysis by Ora Finanza.
This perception changed with the emergence of three major developments.
Green technologies require significant quantities of copper.
A large part of the new digital economy depends on copper-based infrastructure.
Power grids around the world require extensive modernisation.
Leading institutions broadly agree on one forecast: copper demand is expected to grow much faster than supply.
This acceleration is being driven by megatrends that are now firmly established: electrification, digitalisation and industrial transformation.
While demand is accelerating, supply is facing increasingly complex challenges.
Average copper ore grades have fallen by 40% since 1991, increasing extraction costs and operational complexity.
In 2024 and 2025, several major events affected critical production sites in Indonesia, Chile and the Democratic Republic of Congo.
Developing a new mining site can take between 7 and 25 years.
China imports 60% of the world’s raw copper and refines more than 45% of global production.
The global copper supply chain is therefore vulnerable, slow to adapt and geographically concentrated, creating significant industrial and geopolitical risks.
Markets have already reacted to rising demand and supply-side pressures.
Copper is no longer simply following industrial cycles. It is increasingly helping to shape them.
Recycling is one of the main tools available to reduce pressure on the supply chain.
Recycling alone, however, will not be sufficient, because demand is growing too rapidly.
The modern world — digital, electric, autonomous and renewable — physically depends on copper.
Chips and software dominate public debate, but without copper cables, motors, transformers and infrastructure, no technology could be powered, connected or cooled.
Copper is becoming one of the most strategic resources of the century.
Understanding its market dynamics is therefore essential for planning the energy and digital future of the global economy.
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