Copper traded near $6.30 a pound on Tuesday, almost 8% below its Aug. 6 record, after recording its first losing week since June. Global mine output fell 1.1% in the first half of 2026, with Freeport-McMoRan's Grasberg mine operating at roughly half capacity after a fatal landslide and Chile reducing its production forecast. Declining ore grades are increasing the amount of rock miners must process. At the same time, AI data centers are adding demand, with each megawatt of capacity requiring up to 75 tons of copper and analysts estimating roughly 475,000 tons of additional demand this year. Forecasts for the market deficit range from 150,000 tons to 600,000 tons. Morgan Stanley expects the largest shortfall, while Goldman Sachs warns high prices could encourage manufacturers to use aluminum instead. Copper's chart has weakened after a peak of $6.92 on Aug. 6, a break below $6.53 and a test of support near $6.29, with $5.90 identified as a possible next level. Economist Steve Hanke's long recommendation has so far moved against him, leaving the market to weigh deteriorating supply against signs of price weakness.