Copper Prices Hit Record Highs Amid AI-Driven Demand

Copper prices have reached unprecedented levels, driven by constrained supply and rising demand for electrification. The London Metal Exchange (LME) price hit a record high of US$14,455 per tonne on August 6, before dipping to US$14,290 on August 10.

The surge is attributed to the rapid expansion of the AI industry, which requires significant amounts of copper for data centers and power grids. William Osnato, director of commodity data research and analysis at Barchart, notes that the primary driver behind elevated copper prices is demand from these sectors.

Historically, copper was seen as a gauge of global economic activity, but observers note that the mixed global economic position may have changed that role. Meanwhile, aluminium prices have recovered after falling in June and July.