AI Winds Drive a Surge in Copper, Aluminum and Other Base Metals

The explosive growth in the artificial‑intelligence sector has pushed copper prices up by 4.7 %, aluminum by 2.5 %, and nickel by 5.2 % in July.

AI‑Driven Demand Surge

■Copper: +4.7 %

■Aluminum: +2.5 %

■Lead: +0.2 %

■Nickel: +5.2 %

■Zinc: +2.5 %

Global Supply Contraction

■Chile and South Korea inked five joint‑declaration agreements to deepen the critical‑materials supply chain.

■Izabe mines face weather‑induced operational outages, tightening supply.

■China’s export surge in aluminum has tightened global demand, while Middle‑East conflicts have pulled inventory levels down.

Macro‑Economic Context

■Fed signals a likely pause on policy‑rate hikes.

■A weaker dollar index has buoyed metal prices.

Trade‑Policy Pressures

■US plans a 12.5 % tariff on 60 countries, raising trade costs for nickel.

■Indonesia’s quota restrictions have disrupted rare‑earth and uranium shipments.

Investor Sentiment

■Zafer Ergezen: “AI remains the most growth‑driven sector, keeping base‑metal demand robust.”

■Coca‑Cola and others are managing supply‑chain risk amid Middle‑East turmoil.

Markets will view this confluence of AI‑driven demand and tightening supply as a “robust resilience” signal, with copper and nickel poised to maintain their breakout levels amid the nuanced interplay of supply and demand.