(MENAFN- The Rio Times) Copper prices rallied more than 1% Monday morning, recovering from last week's sharp selloff as the world confronts an uncomfortable reality: the metal powering everything from electric vehicles to AI data centers is running dangerously short.

After touching $11,000 per ton on October 9-just $100 below the all-time record set in May 2024-copper plunged 4.9% the following day when President Trump threatened new tariffs on China.

By Monday, London Metal Exchange copper had climbed back to $10,717 per ton, while Shanghai futures reached 85,790 yuan ($12,042) per metric ton, lifted by stronger-than-expected Chinese industrial data showing 6.5% growth in September.

But the real story isn't about daily price swings or trade war headlines. It's about a gathering supply crisis that industry insiders say could reshape global markets for years.

On September 8, 800,000 tons of wet material flooded Indonesia's Grasberg mine-the world's second-largest copper producer-killing two workers and forcing a complete shutdown.

Freeport-McMoRan now projects the mine won't return to normal operations until 2027, erasing nearly 600,000 tons of copper from global supply.



That disaster followed a July 31 accident at Chile's El Teniente mine that killed six workers and sent production at state-owned Codelco-the world's largest copper producer-tumbling 25% in August to its lowest level in over two decades.

These aren't isolated incidents. Mines across the Democratic Republic of Congo, Canada, and Chile have faced flooding, equipment failures, and operational problems throughout 2025.

The cumulative effect: analysts now forecast a 150,000-ton global deficit for 2026, reversing earlier predictions of surplus.

The timing couldn't be worse. AI-powered data centers alone will demand an additional 260,000 tons of copper in 2025, rising to 650,000 tons by 2030.

Electric vehicles require three to four times more copper than traditional cars. Yet developing new copper mines takes 29 years on average, and existing mines are extracting ore with declining copper content.

Global copper inventories across major exchanges have fallen 65% since the start of 2025, dropping to just 556,000 tons-less than one week of worldwide consumption.

Some Chinese smelters are processing copper concentrate for free, or even paying miners for the privilege, because concentrate supplies have become so scarce.

"For copper to reach $12,000 per ton would be quite easy given the serious supply setbacks," said Kenny Ives, head of trading at CMOC Group, speaking at London Metal Exchange Week last week. That would represent an 8% gain from current levels and a new all-time high.

Not everyone agrees. Goldman Sachs warns that China may have passed its industrial peak, which typically precedes metal price corrections by three to six months. Technical analysts note copper must break above $10,794 resistance to confirm the uptrend remains intact.

What's clear is this: the metal that will power the green energy transition and AI revolution is becoming harder to find, just as the world needs it most.

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