3 Trends That Will Push Copper Higher in 2028
2026-10-03 19:30
•Courtney Carlsen •The Motley Fool
••••• •••••••• Axe Cap view
Copper Set to Climb as Demand Outruns Supply by 2028
AI growth and grid upgrades will tighten copper supply, pushing prices higher in the next five years.
Copper’s future looks brighter than many expect, especially given South Africa’s role as a copper producer. The push towards AI data centers and renewable energy infrastructure demands vast amounts of copper wire and components. Add to that, declining ore grades and few new mines coming online globally will squeeze supply. For investors watching the JSE, this favors companies with copper exposure. While Anglo American doesn’t exclusively focus on copper, its investments in copper mining mean it stands to benefit from rising prices. The rand’s behavior is also crucial—if USD/ZAR strengthens, it could offset some gains in local currency terms, tempering the rally. My cautious note: mining capex could ramp up if prices skyrocket, easing shortages faster than expected and capping gains. Still, the balance of evidence puts copper and its local champions on the bullish side through 2028. this is just our opinion and not financial advice
Buy Anglo American and watch USD/ZAR closely for timing. Avoid pure tech plays relying on copper demand since they don’t benefit directly.
- ANGLO AMERICAN
- USD/ZAR
- Faster-than-expected ramp-up in copper mining supply
- Rand strength reducing export gains
7/10
Copper demand is surging due to AI data center construction and power grid upgrades, while supply constraints from declining ore grades and limited new mining projects could create significant shortages by 2028, potentially driving prices higher through the end of the decade.
Our take is based on reporting first published by The Motley Fool.