Commodities
AI Demand Fuels Base Metal Price Surge Amid Supply Concerns
Base metal prices rose in July due to strong demand from the artificial intelligence sector, supply concerns, and a weakening US dollar.
Copper led the gains, increasing 4.7% per pound as worries about meeting rising demand from AI and other industries grew.
The South Korea-Chile cooperation on critical minerals, including lithium and copper, also boosted demand.
Concerns over mining supply in Chile, low processing fees, and global copper stock declines all contributed to upward price pressure.
Aluminum prices rose 2.5% per pound amid tensions in the Middle East and low inventory levels.