Copper prices hit an all-time high in early August, although the rally appears to reflect tight supply and disruptions rather than an indication of strong global growth.
However, demand is also being supported by electrification and investment in power grids and AI infrastructure.
The LME price on 6 August was US$ 14 455 per tonne, although it dipped to US$ 14 290 on the 10th. It was in May that the rate exceeded US$ 14 000 for the first time.
According to CNBC, the soaring price could be reflecting constrained supply, heavy grid investment, uncertainty around US tariffs and rising demand for electrification.
AI expansion
‘The underpinning story of elevated copper prices has been data centre and power grid demand to support the rapid AI industry expansion,’ William Osnato, director of commodity data research and analysis at Barchart told CNBC.
In the past, the metal was seen as a gauge on whether global economic activity was ramping up. But observers say the mixed global economic position means that may no longer be the case.
Meanwhile, aluminium prices have been picking up after falling from a high of US$ 3 855 per tonne in June to little over US$ 3 000 at the start of June. On 10 August, the LME cash settlement was up to US$ 3 327.
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