Copper Supply Alarm: AI and Green Tech Boom Threatens Global Shortage

S&P Global has issued a warning that surging demand from AI, renewable energy, and EVs is creating a critical structural deficit in the copper market, acting as a leading economic indicator.

Implication for Commodity Currencies

• Australian Dollar (AUD) and Chilean Peso (CLP) are the prime beneficiaries of a sustained copper rally.
• Forex Strategy: Monitor AUD pairs for outperformance if supply constraints persist.

Inflationary Risks Return?

• Rising metal costs could drive up PPI, complicating policy for the Fed and ECB.