Copper is a precious metal in the AI age
Add Axios as your preferred source to
see more of our stories on Google.
Copper prices have been on a tear, rising to record highs, spurred by supply disruptions and worries over Trump's tariffs.
Why it matters: When it comes to the digital economy, copper is a precious metal, vital for computer chips, EVs, data centers and just about everything that is electrified.
Zoom in: Copper prices on the London Metal Exchange have risen more than 31% so far this year, touching an all-time high of $11,485 a metric ton on Wednesday.
- Copper prices in the U.S. have also been sharply higher in recent months, with futures rising on Thursday to nearly $5.37 a pound.
Zoom out: Disruptions at mines, including a September accident in Indonesia that killed seven workers at the world's second-largest copper mine, have tightened supplies.
- In addition, shipments of copper were front-loaded earlier this year in an effort to get ahead of any tariffs on the metal.
Threat level: The supply-demand imbalance will likely only get worse.
- "Despite strong copper demand from electrification, the current mine project pipeline points to a potential 30% supply shortfall by 2035," the International Energy Agency forecast in May.
What's next: JPMorgan expects the rally in copper to run into next year, with prices reaching $12,500 a metric ton in the second quarter of 2026.
- A big variable is demand from data center growth, which could translate into a 30% increase in copper demand by data centers next year, writes Gregory Shearer, head of base and precious metals strategy at JPMorgan.
