Copper hovers near record amid AI demand

Copper is testing its near-record high of $6.65 a pound due to strong artificial intelligence (AI) infrastructure investments and renewable energy demand, as easing Middle East tensions and rising hopes for peace between the US and Iran have improved the global growth outlook.

Massive AI investments have been the primary driver of copper’s rise as spending on data centers, energy infrastructure, and power transmission systems continues to drive demand, while expectations of stronger production activity keep prices high.

Supply constraints have also played a key role in copper’s performance as disruptions to the sulfur supply chain in the Strait of Hormuz affected copper production, and the combination of sustained demand and supply issues drove copper to historic highs.

Copper has gained more than 18% so far compared with the end of 2025.

Zafer Ergezen, a futures and commodity markets expert, told Anadolu that copper showed more resilience than other industrial metals even during geopolitical tensions, especially with the advancement of AI technologies and investments in data centers and energy infrastructure.

Ergezen said renewable energy efforts also support copper demand as energy supply security concerns prompted many countries to seek alternative energy sources, launching more renewable energy projects, especially in solar and wind energy.

He said China’s rapidly growing electric vehicle (EV) sector also boosted copper demand, particularly as the market share of Chinese manufacturers grew.

“These main factors continue to drive copper demand,” he said. “There are concerns over a global economic growth slowdown, and these will persist while interest rates remain high, but what drives global growth right now is AI infrastructure.”

“Demand from AI infrastructure keeps copper prices strong, so despite recession fears, copper is heading toward new highs,” he added.