Copper Prices Skyrocket on Supply Fears and Emerging Demand
Copper prices are surging due to concerns over supply disruptions and growing demand from industries such as artificial intelligence data centers and power grids.
The three-month copper futures contract on the London Metal Exchange traded at $14,215.50 per ton on the 21st local time, up 3.08% this month and nearing its yearly high of $14,527.50 recorded in January.
Analysts point to structural demand growth as the main driver behind the rise in copper futures, with emerging sources of demand coming from AI data centers, defense industries, and expanding electricity use.
Kang Song-chul, an analyst at Eugene Investment & Securities, notes that 'in addition to existing demand tied to the business cycle, the replacement and expansion of transmission and distribution infrastructure, along with demand from AI data centers and defense, are driving growth.'