Copper demand is proving resilient against a backdrop of weak macroeconomic conditions in China, Japan, and Europe. Most major economies recorded manufacturing PMI readings below 50 in recent months, yet metal consumption remains elevated due to massive structural investments.
The electrification megatrend, AI data-center construction, and defense spending are creating a new demand floor that did not exist in previous cycles. Fastmarkets notes that this new demand is long-lasting and will grow geographically as more regions pursue electrification and digitalization.
In China, copper demand is supported by grid investment and EV production, though the property sector remains a drag. Global EV market share has reached approximately 25 percent, with each EV containing three to four times the copper content of an internal combustion engine vehicle.
Analysts caution that an AI bubble deflation could disrupt investment flows, but the underlying infrastructure build-out is unlikely to be derailed for long. Tariff impacts remain uncertain, but copper's strategic importance in defense and energy transition provides a demand buffer.