Copper futures rise 3.08% this month as AI demand fuels supply concerns

Copper prices are approaching a record as artificial intelligence data centers, power-grid expansion, defense, electric vehicles and renewable energy drive demand while supply disruptions, physical tightness and trade uncertainty constrain the market. Three-month copper futures on the London Metal Exchange (LME) settled at $14,215.50 a ton on the 23rd, up 3.08% this month and close to the January record of $14,527.50. S&P Global projects global copper demand will rise about 50%, from 28 million tons last year to 42 million tons by 2040. Without supply expansion beyond currently planned investments, the shortfall could reach about 10 million tons by 2040. A second winter storm in Chile's Atacama region contributed to a lower output forecast from Lundin Mining, while spot copper on the LME traded at a premium of as much as $545 a ton over three-month futures. LME inventories have risen to 166,776 tons but remain below half their peak from four months earlier, with 58% of global exchange copper inventories concentrated in CME warehouses by late July. Copper-related South Korean shares also advanced, including Lee Ku Industrial, Taihan Cable & Solution, LS and Poongsan. UBS sees the refined copper deficit widening to 379,000 tons in 2027, while Bank of America expects prices to exceed $15,200 a ton that year and potentially reach $16,000 in the second half.

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Copper futures rise 3.08% this month as AI demand fuels supply concerns - CoinPost Terminal