Copper Prices Hit Record $6.64 Per Pound Amid Supply Constraints and AI Demand

Copper prices have surged to a record high of $6.64 per pound, driven by a combination of intense global demand and significant supply chain disruptions. The rally is primarily fueled by the expanding infrastructure for artificial intelligence data centers, the growth of electric vehicles, and the global transition toward renewable energy. These sectors rely heavily on copper for energy transmission and battery technologies. On the supply side, production challenges in major producing nations like Chile, Zambia, and the Democratic Republic of the Congo have constrained output. Additionally, geopolitical tensions involving the US, Israel, and Iran have disrupted oil supplies, prompting Asian and European nations to accelerate their shift to renewables, further boosting copper demand. Logistics bottlenecks, particularly affecting sulfur supplies from the Strait of Hormuz needed for ore processing, have exacerbated the shortage. Although prices initially dipped due to war-related economic risks, they quickly recovered as supply-demand imbalances intensified. Experts note that rising energy and transportation costs have added upward pressure on prices, making copper a critical strategic commodity in the current economic landscape.