China's Computing Power Surge Drives Nonferrous Metals Boom

China's nonferrous metals industry is experiencing a surge in demand driven by the rapid growth of computing power needs, according to data released by the China Nonferrous Metals Industry Association. In the first half of the year, output of the 10 major nonferrous metals totaled 41.513 million metric tons, up 3.3 percent year-on-year. Profits of above-designated-size nonferrous metal companies soared 94 percent year-on-year to 418.39 billion yuan ($61.83 billion), making the sector one of the top performers in terms of profit growth among industrial industries.

Within this strong performance, demand for 'computing metals' has seen a particularly sharp surge. Prices of nonferrous metals including copper, aluminum, tin, tantalum and indium have risen significantly. Among them, tin prices jumped 40 percent in the first half of the year, while tantalum prices soared 158 percent and indium prices climbed 60 percent.

China is the world's largest producer and consumer of copper products, accounting for more than half of global copper consumption. Emerging industries such as AI and new energy have driven robust demand, leaving copper inventories at relatively low levels and providing further support for prices to remain high, according to CCTV News. Morgan Stanley previously forecasted that global copper demand from data centers will surge from 740,000 metric tons in 2026 to 1.3 million metric tons by 2028.

Tin has become a key material in advanced semiconductor packaging thanks to its conductivity, low melting point and soldering stability. AI servers, optical modules and advanced packaging are now among the biggest drivers of incremental tin demand. Global computing power is expected to grow at an annual rate of more than 60 percent over the next five years, exceeding 50 EFlops by 2030.

The short-term supply-demand dynamics for 'computing metals' have not undergone fundamental changes, providing support for prices, Duan Shaofu, deputy secretary-general of the China Nonferrous Metals Industry Association, told CCTV News business channel in a recent interview. However, macroeconomic factors are weighing on valuations and geopolitical uncertainties remain, while heightened market sensitivity could increase price volatility risks.