Copper – arguably the world’s most important commodity for its many uses – just hit a 14-month high with the price reaching over $9,400 a tonne.

It’s up around 15% over the past two months alone.

So, what’s been going on?

Mega trends = Mega demand for copper

Many everyday products depend on copper including mobile phones, laptops, homes, and automobiles.

However, the demand for copper is skyrocketing thanks to mega energy trends such as electric vehicles (EVs), solar and wind power.

For example, copper demand for solar power is expected to double by 2030.

Meanwhile, wind energy will see demand increasing around 80% to 900,000 tonnes by 2030.

And that’s just from two “green” energy sectors…

According to one of the world’s largest commodity traders, Trafigura, copper demand linked to the boom in artificial intelligence (AI) and data centres is expected to add 1 million tonnes of demand by 2030.

Meanwhile, JP Morgan expects copper demand for AI and data centre could grow to 5 million tonnes.

Simply put – there’s huge demand for copper!

The problem is there’s not enough supply.

So much so, that JP Morgan forecasts a globally supply gap of 4 million tonnes by 2030 – and that’s just from demand due to EVs and renewables.

Copper mine grads have been in steady decline, meaning it becomes more expensive to mine.

According to Goldman Sachs, we need copper price above $13,000 a tonne to incentivise miners to produce. That’s at least a 38% upside in prices from today.

China’s recovery is positive for copper demand

Another big reason why copper has recovered to hit a 14 -month high is…China.

After all, China is the world’s largest producer and consumer of copper.

Recently, China’s manufacturing activity hit its highest level since March 2023.

This typically signals an economic recovery.

As a result, traders expect this recovery to spur on demand for copper sending its price higher.

This is good news for miners in our Red Hot Penny Shares portfolio like Jubilee (JSE: JBL), who recently announced a 46.5% increase in copper production.

The company plans to upgrade the Sable refinery and Roan concentrator in Zambia this year – which will increase copper production enormously!

Already, over the past week, the increase in copper price has catapulted Jubilee’s shares +27% higher!

This could be the start of a big rally! If you’d like to know when we think it’s time to buy, sign up now and get the first month’s copy free, along with all my buy/sell updates over the next 30 days

We also hold Copper 360 (JSE: CPR) and while the company isn’t profitable yet, it boasts huge future potential – In fact, we expect this company to generate profits of R1billion by 2026! ! If you want to see why, then make sure you get access to Red Hot Penny Shares today.

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