AI, clean energy push may trigger new commodity supercycle

AI, clean energy push may trigger new commodity supercycle

Investments in artificial intelligence (AI) infrastructure, the global clean energy transition and supply-chain reshoring could trigger a new commodity supercycle, creating long-term opportunities in copper, power infrastructure and electrification-related sectors, according to a Centrum report.The report said the world may be in the early phase of a commodity supercycle, a prolonged period of rising commodity prices, with the current upcycle still having significant room to run.A supercycle happens when a huge, lasting jump in demand meets a supply base that takes years to grow.Looking at over a century of inflation-adjusted commodity prices, the last major low came in 2020, it noted. Further, the current upcycle is around six years old and, based on past cycles that typically lasted 13-21 years, it may still have further room to run as prices remain below their long-term average.