Copper Price Surges Near Record High Amid AI Demand and Supply Disruptions

Copper prices are nearing record highs due to strong demand from artificial intelligence (AI) infrastructure and supply disruptions. The Copper futures contract (HGU6) closed at $6.86, a zone that represents record-high territory.

The growth of AI applications has led to an increase in demand for copper, which is essential for construction, electronics, transportation, and data centre infrastructure. According to CNBC analysis, restricted market supply is also contributing to the upward trajectory in copper prices.

Heavy snowfall, excessive rainfall, and strong winds have caused production disruptions in Chile, the world's largest producer of copper.

From a technical perspective, the Copper futures contract has demonstrated a robust upward trajectory. The price is trading above its 50-day, 100-day, and 200-day Simple Moving Averages (SMAs), indicating that the primary bullish trend remains predominant.