Investment firm Bernstein (AllianceBernstein) has issued a new copper price target for 2026, forecasting an average of $11,500 per tonne in the first quarter, before moderating to approximately $10,000 per tonne in the third and fourth quarters of the year. This outlook comes as copper prices recently surged to unprecedented levels, briefly touching $13,285 per tonne on January 7, 2026. The bullish short-term forecast is primarily attributed to a 'super-squeeze' in the copper market. Key drivers include significant supply disruptions, such as a catastrophic mudslide at the Grasberg mine in Indonesia and severe seismic-induced flooding at the Kamoa-Kakula complex in the Democratic Republic of Congo, alongside labor unrest at Chile's Mantoverde mine. These disruptions have led to a persistent supply deficit, with the International Copper Study Group estimating a deficit as high as 440,000 tonnes for 2026. Compounding the supply crunch is an 'insatiable appetite' for the metal from the rapidly expanding Artificial Intelligence (AI) data center sector and ongoing global electrification trends, which include the energy transition and electric vehicle (EV) manufacturing. Bernstein's analysis also highlights the role of speculative positioning and arbitrage activity in keeping prices elevated. However, Bernstein anticipates a moderation in prices later in 2026. This expected cooling is linked to the potential normalization of inventory flows as affected mines gradually return to full capacity, a possible 'bullwhip effect' leading to an oversupply of scrap metal, softening demand growth, increased substitution, and potentially lower electric vehicle sales impacting market sentiment. The report underscores that negative economic headlines, particularly those related to AI and EVs, could trigger rapid outflows of investments and subsequent price corrections. This forecast is highly relevant for India, identified as a primary growth market for copper beyond China, with significant consumption increases projected by 2030 due to massive infrastructure investment in renewable energy.