Copper Prices Climb on Supply Disruptions and Green Energy Needs

Grid Infrastructure and AI

The build-out of global power grids and the cooling requirements of massive AI data centers are providing a non-cyclical demand base for copper. Even as traditional construction slows in some regions, the electrification of the global economy ensures a steady off-take of refined copper, keeping prices well above historical averages.

LME Inventory Levels

Inventories at the London Metal Exchange have dropped significantly this month, fueling fears of a supply squeeze. Production issues at major South American mines have restricted the flow of new supply, leaving the market highly sensitive to any further disruptions. Analysts expect copper to average over $11,000 per ton throughout 2026.