Compute Metals Boom: AI Drives Up Demand for Copper, Aluminum, and Tin
The rapid growth of AI compute infrastructure is driving up demand for non-ferrous metals, including copper, aluminum, tin, tantalum, and indium. According to data released by the China Nonferrous Metals Industry Association, output of these metals reached 41.513 million metric tons in the first half of this year, a 3.3% increase from the same period last year.
Total profits of above-designated-size non-ferrous enterprises surged by 94.0% to CNY 418.39 billion, making profitability growth in the sector among the highest across the industrial sector.
The prices of these metals have risen significantly over the past six months, with tin prices jumping by 40%, tantalum skyrocketing by 158%, and indium climbing by 60%. Copper, a core material for compute connectivity, is also seeing increased demand, with global data center consumption projected to reach 740,000 metric tons in 2026 and 1.3 million metric tons by 2028.
Tin has become a vital foundational material in advanced semiconductor packaging due to its excellent electrical conductivity, low melting point, and high soldering stability. Industry research indicates that an individual AI server consumes more than three times the amount of tin used in a traditional server.