LS Group Surges on Record Copper Prices Amid AI-Driven Power Grid Demand
LS Group shares are surging as copper prices hit a record high on the London Metal Exchange, driven by demand for power grids fueled by artificial intelligence data centers.
The international copper price has risen 18% so far this year, with three-month copper climbing to $14,703 per ton on August 8th. LS Group's affiliates are benefiting from higher selling prices for cables and power equipment, which feed into the group's revenue stream.
LS shares traded around 336,500 won as of 11 a.m. on the 9th, up 11% from the previous session, while other group affiliates such as Gaon Cable and LS Eco Energy saw significant gains. The rally is attributed to analysts reading the move as reflecting expected earnings gains across the group.
A copper supply squeeze has contributed to the price spike, with Chile's copper export value falling 14% in August due to bad weather halting operations at major mines and shipments at ports. U.S. inventories have also surged to a record high of 696,000 tons as companies invest directly in raw material mines.