Copper Hits All-time High

Copper futures climbed to around $6.6 per pound on Wednesday, reaching fresh all-time highs on the back of stronger Chinese demand and growing supply concerns. Recent data suggested resilient industrial activity in China despite geopolitical headwinds, while consumption remained robust across power grids, renewable energy, and artificial intelligence-related infrastructure. The ongoing rally in AI equities has also reinforced expectations for continued investment in data centers, further supporting copper demand. On the supply side, disruptions to sulphuric acid availability linked to the US-Iran conflict raised concerns over tighter global supply conditions. Meanwhile, President Donald Trump is scheduled to meet Chinese President Xi Jinping this week, though he noted that trade discussions will take precedence over the Iran situation.

Copper increased to an all-time high of 6.58 USD/Lbs. Over the past 4 weeks, Copper gained 10.09%, and in the last 12 months, it increased 40.86%.

Copper futures in the US surged above $6.4 per pound, the highest on record, as concerns about supply and the speculative longer-term demand outlook drove bidding volumes to surge. The ongoing conflict between the US and Iran in the Middle East has all but suspended exports of sulphur and sulphuric acid from the key region since March. The tight supply for the commodity, which is used by refiners through heap leaching and purifying copper to produce anodes, drove China to suspend exports. Consequently, the shortage in top copper producer Chile forced major refiners to cut capacity and lower supply. Meanwhile, major tech companies continued to sign agreements that exponentially increase datacenter construction, supporting the outlook for copper due to its utility in electrification and grid technology. Broader manufacturing demand was also underpinned by robust manufacturing activity in China, with the broader manufacturing PMI rising to an over five-year high.