Copper Soars as Trade Policy Uncertainty Meets AI-Driven Demand

Copper prices have surged to new records in recent weeks, fueled by a perfect storm of shifting trade policies and growing demand from the artificial intelligence infrastructure boom.

The Comex copper price touched an all-time high above $6.72 per pound in late August and has continued to trade near those levels into September.

Two main factors are driving this surge: the current tariff policy, which has led to a scramble for refined cathode copper as traders try to beat a possible 50% tariff on semi-finished copper products and derivatives; and demand from data centers, hyperscalers, grid modernization, and electrification, which is structurally higher than ever before.

The tariff policy exemption has caused a surge in inventory buildup in U.S. warehouses, effectively draining the global surplus of refined cathode copper, with some analysts warning that the non-U.S. market could look like an outright deficit if flows continue.