copper

If you’ve been following the "copper supercycle" narrative, you know the vibe has been pretty electric lately. We’ve seen record highs, talk of massive shortages and a "buy everything" mentality driven by the green energy transition.
But Goldman Sachs just tapped the brakes. In their latest update, they’ve shifted their 2026 outlook and it’s a classic case of high prices being their own best cure.
Here’s the breakdown of what’s changing and why the "supply gap" isn’t hitting quite as hard as we expected.
1. The Numbers: From Scarcity to Surplus
Earlier this year, the narrative was all about deficits. Now, Goldman has revised their 2026 global copper surplus forecast to 300,000 tonnes, up significantly from their previous estimate of 160,000 tonnes.
For context, they also bumped their 2025 surplus estimate to a whopping 500,000 tonnes.

What does this mean for the price?
Goldman expects copper to cool off from its recent peaks, targeting around $11,000 per metric tonne by the end of 2026 roughly an 18% drop from the highs we saw earlier this year.
2. Why the Shift? (The "Human" Factors)
Markets aren't just spreadsheets they react to people and policy. Three things are driving this surplus:
The Scrap Response: When copper prices shot past $12,000, people didn't just keep buying they started digging through the "junk drawer." High prices incentivized a massive wave of recycling and scrap recovery, which effectively acted as a "shadow mine" bringing more supply to the market than expected.
The "EV Diet": We’ve heard for years that EVs need tons of copper. That’s still true, but engineers are getting efficient. Newer EV models are being designed with lower "copper intensity" basically finding ways to use less of the red metal to keep costs down.
The Tariff Factor: There’s a lot of talk about a potential 15% U.S. tariff on refined copper. This led to a massive bout of "front-running" or stockpiling in late 2025 and early 2026. Once that stockpiling ends and the policy becomes clear, that artificial demand disappears, leaving the market with plenty of extra metal sitting in warehouses.
3. Is the Bull Run Over?
Not exactly. It’s more of a breather than a collapse.
Goldman is still very bullish on the long-term. They view this 2025–2026 surplus as a "transient condition." While we have enough copper right now because of scrap and efficiency, the long-term structural problems haven't gone away.

Ore grades are still falling (it’s getting harder to find high-quality rock).
New mines take 10+ years to permit and build.
The Grid is the new EV: Power infrastructure and data centers (hello, AI) are projected to drive 60% of copper demand growth through 2030.
Goldman is essentially saying, "The party got a little too loud, too fast." By 2026, the market will be better balanced, prices will likely settle into a more sustainable range ($10,000–$11,000) and the "scarcity premium" will fade at least until the next big demand wave hits.
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