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Freeport-McMoRan CEO forecasts tight global copper supply balance for 2026
Wednesday, February 4, 2026 at 12:00 AM
Freeport-McMoRan's CEO notes a rise in global copper inventories despite high prices, with market projections for 2026 indicating a tight balance or potential deficit in the supply of this critical semiconductor and electronics material.
Context
Freeport-McMoRan CEO Kathleen Quirk projects a "tightly balanced" global copper market for 2026, as rising exchange inventories struggle to offset soaring demand. While some analysts forecast small surpluses, others predict a structural deficit of 330,000 metric tons. This shift is largely driven by the semiconductor supply chain and AI data centers, which require significantly more copper cabling and power infrastructure than traditional server farms, often doubling the metal intensity per megawatt.
The timing is pivotal as Freeport-McMoRan expects to restore 85% of its Grasberg mine capacity by late 2026 following recent operational disruptions. The company targets sales of 3.4 billion pounds of copper for the year, backed by $4.3 billion to $4.5 billion in capital expenditures. With copper prices testing record highs near $6.00 per pound, the firm remains a primary beneficiary of the transition toward AI-driven infrastructure and global electrification.
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