Copper near record highs on AI, energy demand, short supply

Copper futures prices rose above $6.29 a pound, approaching the record levels seen at the end of January, driven by expectations of long-term demand growth and mounting concerns about disruptions in production and supply. Copper, as a metal essential to energy, industry, infrastructure and new technologies, remains one of the most important commodities in the world economic transformation. Investors assume that demand for copper will continue to grow for many years. Key sources of demand are expected to include investment in artificial intelligence infrastructure, modernisation of power grids and the development of clean energy. The metal is essential in cables, installations, data centres, transmission systems, electric vehicles and many technologies linked to the electrification of the economy. Lower energy prices have provided additional support for the market, easing concerns about the condition of the world economy and demand for industrial metals. As a result, copper has gained importance as a commodity that connects investors’ short-term expectations with long-term technological and infrastructure trends. Copper futures on COMEX, daily timeframe, source: TradingView   The rise in copper prices is also driven by concerns over the availability of raw materials needed for its processing, such as sulfuric acid, used in the copper refining. The conflict in the Middle East has disrupted supplies of this component, while China has introduced an export ban from May until December. Beijing’s decision could reduce the global seaborne sulfuric acid market by around 3 mln tonnes. Chile, Indonesia and India are the most exposed to the effects of these restrictions. The significance of the problem is highlighted by the situation in Chile, where copper production fell by around 6% year on year in the first quarter of 2026. Restrictions on access to sulfuric acid could therefore further hamper efforts to increase refined copper supply, at a time when the market expects rising demand. Congo could strengthen position Against the backdrop of growing supply tensions, the Democratic Republic of Congo is gaining increasing importance. Chinese state-owned company China Railway Group Ltd., known as CREC, plans to develop one of the potentially largest copper projects in the world there. Company representatives met with Congo’s Minister of Mines, Louis Watum, to discuss the investment, which is being carried out in cooperation with a CREC subsidiary and Congolese state-owned diamond company MIBA. The planned mine would be located in Kasai-Oriental province, outside the traditional copper-mining region of Katanga. Its target output could range from 200,000 to 500,000 tonnes a year. This scale would make the project one of the more significant mining ventures in the copper market. President Félix Tshisekedi is expected to support the rapid launch of the investment, which could further strengthen the country’s position as the world’s second-largest copper supplier after Chile. Copper production in Congo has more than tripled over the past decade, and Chinese companies currently account for the majority of the country’s output. The development of a new mine would demonstrate the further strengthening of China’s influence in Africa’s raw materials sector. At the same time, the United States is trying to increase its presence in Congolese mining, indicating that access to copper is becoming an increasingly important element of global economic competition. The current situation in the market combines strong demand fundamentals with growing supply-side uncertainty, with an upward pressure on copper prices. The planned investment in the Democratic Republic of Congo shows that the largest economies and commodity companies are preparing for a long-term increase in the importance of this metal. Copper remains one of the key raw materials of the future, and its market is increasingly reflecting both the pace of technological transformation and geopolitical competition for access to strategic resources. (Source: OANDA) The post Copper near record highs on AI, energy demand, short supply appeared first on Financial Mirror.