Copper is now on the verge of becoming scarce, as new data predicts how the metal scarcity point is widening at a rapid pace. The copper market is bracing for its most severe deficit in 2026, which could streamline the copper rarity factor into mainstream attention and the spotlight.

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Copper Deficit Widening: What’s Happening

As per the latest report by the Kobeissi letter, the copper market is expected to encounter one of its worst deficit spells next year. Morgan Stanley predicts that copper shortage will be one of the leading issues of 2026, widening by nearly -590,000 tonnes.

Moreover, this deficit may widen by 1.1 million by 2029, adding more pressure on the copper market.

Citing issues such as major market disruptions, MG stated that this has been the primary cause for the copper supply crunch, skewing the metal’s output and delivery.

“Copper is set for a historic shortage next year: The copper market is expected to face its most severe deficit in 22 years in 2026, at -590,000 tons, according to Morgan Stanley. The deficit is expected to widen by 2029 to a whopping -1.1 million tons. This comes as global annual copper production is on course to contract for the first time since 2020. Major production disruptions have impacted mines worldwide, with operational issues at several major mining sites exacerbating supply constraints.”

Copper Price to Hit New Highs?

The Kobeissi letter later shared how copper price demand is significantly rising, as data powers and AI centers require copper to execute operations smoothly. This scenario could potentially end up strengthening copper prices, with the rarity factor weighing heavily on its price narratives.

“At the same time, demand from AI data centers and electric vehicles may outpace supply. Copper miners have already struggled for years to keep pace with surging demand. Higher copper prices are here to stay.”

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