Copper Prices Soar to Record Highs Amid AI Demand and Supply Disruptions
Copper prices have reached record highs driven by growing demand from AI-related data-centre construction and expansion of electricity grids. The National Bank of Canada's Kyle Dahms notes that copper is at a nominal record high, with prices nearing its 2011 peak in constant Dollar terms.
This surge has been amplified by tariff-driven stockpiling and supply disruptions, which have pushed sulphur prices to more than twice their level at the start of the year. Sulphur is a key feedstock for sulphuric acid used in certain processing methods for copper.
The increased cost of copper will soon surpass its 2011 peak, lifting the real price to its highest level since the mid-1970s. Kyle Dahms warns that this represents a tax on future growth, raising costs for power grids, AI infrastructure, and broader electrification projects.