In February 2026, the global copper market operated strongly, with prices maintaining historical high levels amid structural supply-demand imbalances. The market saw a notable contrast between high exchange inventories and tight physical supply, while the combined drive of traditional demand recovery and emerging sector growth underpinned the bullish trend.

On the supply side, the industry faces persistent constraints. Global copper mine production growth remains sluggish, projected at 2.3% annually by the International Copper Study Group (ICSG). Key challenges include declining ore grades, frequent production disruptions from geological issues and labor negotiations, and delayed new project launches. Smelters also face pressure: high energy costs, rising carbon prices in Europe, and copper concentrate shortages have pushed global smelter idle rates to 14.3% in early 2026, with spot treatment charges (TC/RC) falling to negative levels.

Demand remains resilient across both traditional and emerging sectors. Power grid investment, construction, and home appliance exports maintain steady growth, while new energy vehicles (NEVs), renewable energy installations, and AI data centers drive significant incremental demand. NEVs consume 4-6 times more copper than traditional vehicles, and AI data centers double the per-megawatt copper usage of conventional facilities.

Looking ahead, the market will continue to be shaped by constrained supply and robust demand growth. Short-term fluctuations may arise from post-holiday inventory adjustments and macro policy shifts, but the medium-to-long-term bullish trend persists. Key monitors include overseas mine commissioning progress, downstream demand recovery, and global macroeconomic changes.