AI-Driven Demand Sends Base Metal Prices Soaring

The prices of base metals such as copper, aluminum, nickel, and zinc rose in July due to strong demand from the artificial intelligence (AI) sector, a weakening US dollar, supply risks, and shrinking opportunities for the US Federal Reserve to raise interest rates.

Copper prices jumped 4.7 percent per pound, while aluminum prices rose 2.5 percent per pound. Nickel prices also surged 5.2 percent per pound due to concerns that nickel trade costs will increase following a proposed 12.5 percent tariff on imports from 60 countries.

The AI sector's demand for base metals has increased significantly, according to Zafer Ergezen, a futures and commodities market expert. He stated that 'AI is the sector that contributes the most to global growth' and that its strong demand will continue in the coming period.