Copper Hits All-Time High as Supply Fears and AI-Driven Demand Surge

LONDON — Copper prices reached a new record high on Tuesday, September 8, in London. The benchmark price for the "red metal" surpassed $14,600 per tonne, driven by growing concerns over global supply constraints and strong outlooks for rising demand.

Tightening Market Amid Production Challenges

The copper market is tightening as producers struggle to rapidly scale up output. In the first half of 2026, global mine production of copper declined by 1.1%. Notable drops in production from Chile, Indonesia, and the Democratic Republic of the Congo have intensified fears about future supply availability.

AI and Green Energy Fuel Demand

Copper plays a critical role in electrical grids and emerging infrastructure. The rapid growth of electric vehicles (EVs), renewable energy sources, and modernized power grids is expected to sustain demand in the coming years.

The explosive development of artificial intelligence (AI) is further amplifying this trend. Data centers required to power AI services consume massive amounts of electricity and necessitate extensive electrical infrastructure, significantly boosting copper consumption.

Mixed Signals: Refined Output Surges

Despite the decline in mine production, the situation remains nuanced. Global production of refined copper increased by 2.4% in the first half of 2026. This output exceeded global consumption, resulting in an estimated surplus of 131,000 tonnes.

Consequently, the recent price surge also reflects anxieties regarding the metal’s future availability and the distribution of existing stockpiles. On Tuesday, copper peaked at $14,694 per tonne, marking its highest level in history.

Outlook: Volatility and Trade Risks

Prices may remain volatile in the coming months. Potential U.S. trade measures on refined copper could alter international trade flows and exacerbate tensions in specific regional markets.