Congo's Export Ban and AI Demand Send Copper Prices Soaring
Copper prices have hit a record high due to a combination of factors. The Democratic Republic of Congo, which is the world's largest cobalt producer and second-largest copper supplier, has tightened its export ban on copper and cobalt concentrates. This move comes after a June 29 government order signed by Mines Minister Louis Kabamba Watum, Foreign Trade Minister Julien Paluku Kahongya, and Economy Minister Daniel Mukoko Samba.
The Congo's processing push will make it harder for miners to export unbeneficiated concentrate, which is currently smelted at on-site smelters or at the Lualaba Copper Smelter in Kolwezi. Traders are taking a cautious approach due to thin inventories and tight cash-to-three-month copper spreads.
The AI buildout has also contributed to the surge in copper prices. Data centers require large amounts of copper for power distribution, cooling systems, and grounding infrastructure. According to Industrial Info, a single one-gigawatt AI data center can require up to 50,000 tons of copper. Wood Mackenzie projects that data center power capacity additions will rise from 15-20 gigawatts today to about 30-33 gigawatts in the early 2030s.