Copper Prices Near Record: AI and Renewable Energy Demand Drive Markets

Copper's spot price climbed to $6.65, edging closer to an all‑time high as AI‑driven data‑center investments and renewable‑energy projects boost demand, while supply constraints add further support.

Global Demand Surge: Copper at the Heart of AI and Renewable Energy

■Accelerating AI data‑center and energy‑grid projects have lifted copper demand by roughly 18%.

■Electric vehicle (EV) production in China is expanding 22%, driving a proportional rise in copper consumption.

■Renewable‑energy deployments, especially solar and wind, have pushed copper usage to 1.2 billion tonnes by 2024.

Supply Bottlenecks: Strait of Hormuz and Sulfur Chain Disruptions

■Logistical hiccups around the Strait of Hormuz have caused 3‑5% delays in the sulfur supply chain, throttling copper output.

■The resulting tightness helped push prices to $6.67, breaking the previous record.

Price Nearing the Summit: Historic Levels and Market Mechanics

■By the end of 2025, copper is projected to gain over 18%, potentially reaching $6.80.

■Diminishing geopolitical tensions and a prospective US‑Iran accord have bolstered global‑growth optimism, further feeding demand.

Expert Take: Zafer Ergezen on Copper's Resilience

■Ergezen notes copper's greater resilience compared with other industrial metals, driven by three pillars: AI, renewables, and EVs.

■He adds that despite high‑interest‑rate environments, copper's march toward record highs reflects the engine of AI infrastructure outweighing recession fears.

Markets see copper's climb toward historic highs as a clear signal that AI and green‑energy projects are becoming the primary growth engine. While supply constraints may inject volatility, demand‑side fundamentals are set to keep prices firmly supported.