Copper Prices Consolidate Near Record Highs on AI Infrastructure Shortfall

The Data Center Bottleneck

Copper is increasingly viewed as the ultimate 'choke point' for AI hardware. Hyperscale data center projects are consuming copper at a rate four times higher than traditional commercial construction. This electrification surge is hitting a wall of stagnant mine production in Chile and Peru.

Inventory and Tariff Positioning

US Comex stocks have risen as traders front-run potential 2026 tariff announcements, while LME stocks continue to decline. This inventory dislocation is creating localized supply squeezes, supporting the $5.50–$6.00 trading range for the 'red metal'.