Copper Prices Soar on AI Demand Surge, Supply Shortages Loom

Copper prices are nearing record highs as demand surges due to artificial intelligence (AI) data center buildouts and power grid expansion. The metal has gained 3.08% this month alone, settling at $14,215.50 per ton on the London Metal Exchange (LME).

Kang Song-chul, an analyst at Eugene Investment & Securities, notes that electricity usage is driving copper demand growth, citing AI data centers and defense applications among key factors.

Supply disruptions in major producing countries have also contributed to price increases. A second winter storm has battered Chile's Atacama region, prompting Lundin Mining to lower its copper production guidance for the year.