AI-Fuelled Commodities Boom Pushes Metals Prices to Fresh Highs

The metals industry is experiencing an uptick in demand due to the rapid growth of artificial intelligence and data centre infrastructure. Copper, in particular, is seeing a surge in prices as analysts estimate that data centres will require 475,000 tonnes of copper by 2026 alone. This has led to a supply gap, with Wood Mackenzie predicting a potential deficit exceeding 304,000t seen in 2025.

Copper's price has touched a record high of US$14,527 per tonne just last month and is expected to reach US$14,800 per tonne later this year, according to JP Morgan. Other metals such as zinc, tin, aluminium, uranium, rare earths, and critical minerals are also trading at multi-year highs with supply deficits looming large.

The AI boom has become a major driver of the metals industry, directly supporting small cap resources companies. Nicholas Read, CEO of Read Corporate, notes that 'virtually every commodity seems to be connected in some way' and that the speed of AI's adoption has been the biggest surprise over the last 12 months.