Copper Surges to New High as AI Demand Soars
Copper prices have hit an all-time high on the London Metal Exchange, touching $14,617 a metric ton. This surge is being attributed to the increasing demand for copper in AI data centers and other electrical infrastructure.
The metal's price has historically been seen as an indicator of global industrial health, hence the nickname 'Dr. Copper'. With the rise of artificial intelligence, the demand for copper has increased significantly.
J.P. Morgan estimates that a single large AI data center requires up to 50,000 metric tons of copper, and data centers in total will consume around 475,000 metric tons in 2026. However, supply is not meeting this demand, with Chile, the world's largest producer, cutting its full-year forecast for the second straight quarter.
The J.P. Morgan Global Manufacturing PMI rose to a three-month high of 52.3 in August, and the Institute for Supply Management's manufacturing index registered 54.6% in August, an eighth straight month of expansion.