Copper Market Swings into Deficit on AI Infrastructure and Grid Upgrades

AI and Power Grid Squeeze

The rapid rollout of AI data centers is consuming copper at five times the rate of traditional facilities. This surge is hitting a wall of stagnant mine production, creating a structural deficit that is decoupling copper from other industrial metals.

Severe Supply Disruptions

Labor strikes and operational hurdles in Peru and Chile are preventing a meaningful supply response to high prices. LME inventories remain near record lows, making the market highly sensitive to any further logistical bottlenecks.