Copper Surges to Record High as AI Demand and Tariff Uncertainty Fuel Rally

Copper prices have reached an all-time high of $14,779 per ton on the London Metal Exchange, surpassing previous records set in January. This surge is attributed to a combination of factors, including long-term demand from AI data centers and power grid investment, as well as supply disruptions at major mines in Chile and the prospect of new US tariffs.

Market analysts point out that economic trends alone cannot explain the recent rally. The expanding use of AI data centers and power infrastructure is driving up copper demand, while supply disruptions and the possibility of a 15% tariff on refined copper imports from the US are adding short-term upward pressure on prices.

The immediate trigger behind the latest price gains is the delay in a final decision on imposing the US tariff. The uncertainty surrounding this decision has led to increased stockpiling by the US, drawing inventories toward American warehouses and further fueling the rally.