Copper Hits Near-Record High on AI Demand
Copper prices are hovering near record highs due to strong demand from artificial intelligence (AI) infrastructure investments and renewable energy projects. The metal's price has been driven up by massive investments in data centers, energy infrastructure, and power transmission systems.
The combination of sustained demand and supply constraints has pushed copper to historic highs. Supply chain disruptions in the Strait of Hormuz have affected copper production, further contributing to the price increase.
According to Zafer Ergezen, a futures and commodity markets expert, copper has shown more resilience than other industrial metals during geopolitical tensions. He attributes this to the advancement of AI technologies and investments in data centers and energy infrastructure.