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Commodities analysts at Citigroup (NYSE: $C ) say the current rally in copper prices is set to continue in 2026 as global demand remains high and amid hoarding of the industrial metal in the U.S.

Citigroup writes in a note to clients that prices for the red metal are skyrocketing due to strong demand from the energy and artificial intelligence (A.I.) sectors.

Electrification, grid expansion, and data-centre buildouts require large amounts of copper for wiring, power transmission, and cooling computer infrastructure.

According to Citigroup, projected copper deficits due to constrained mine supply and ongoing "hoarding" in the U.S. will continue to push prices higher.

"We expect the U.S. to hoard global copper inventory and, in a bull case, draw further on depleted ex-U.S. stock," writes the New York bank in its 2026 outlook.

For these reasons, Citigroup forecasts that copper's price will hit $13,000 U.S. per ton in early 2026, and $15,000 U.S. in the second quarter of next year.

The price of the red metal, which is a leading indicator for the health of the global economy, traded at $11,816 U.S. per ton on the London Metals Exchange Dec. 12.

Copper's price has gained 36% so far this year and is up 9% in the last month alone.

Refined copper inflows into the U.S. have increased by about 650,000 tons this year, pushing inventories in America to 750,000 tons, leading to Citigroup's "hoarding" comment.