Copper nears record highs on supply risks, AI demand

Copper futures climbed above $6.29 per pound, approaching the record levels seen in late January. Traders and analysts link the move to forecasts of sustained demand for technology and clean-energy projects alongside concerns about refinery inputs and mine output.

Market participants cite investment in artificial intelligence data centers, power-grid upgrades, electric vehicles and clean-energy infrastructure as sources of long-term copper demand. Copper is used in wiring, transformers, data-center equipment and motors for electric vehicles. Lower global energy prices have reduced some near-term demand concerns for industrial metals.

Supply-side attention has focused on sulfuric acid, a reagent used in hydrometallurgical processes to leach and refine copper. Conflict in the Middle East has disrupted some deliveries, and China introduced an export ban on sulfuric acid that began in May and runs at least through December. Analysts estimate the restriction could remove about 3 million tons from the global seaborne sulfuric acid market, affecting refiners that rely on imported acid.

Countries identified as most exposed to the acid shortfall include Chile, Indonesia and India. Chilean copper output fell about 6% year-on-year in the first quarter of 2026, which market participants say reduces the slack available to meet rising refined-copper demand if reagent supplies tighten. Producers and smelters that depend on imported sulfuric acid could face delays or cuts in refined output until alternative supplies are secured.

On the mining side, China Railway Group Ltd. (CREC) has proposed a major copper development in the Democratic Republic of Congo’s Kasai-Oriental province alongside a CREC subsidiary and state-owned diamond company MIBA. Company representatives met with Mines Minister Louis Watum to discuss a project planned outside the traditional Katanga copper belt with potential annual output of 200,000 to 500,000 tons if developed.

Congo’s copper output has more than tripled over the past decade, and Chinese companies account for the majority of current production. President Félix Tshisekedi is expected to support accelerated approval for the CREC project. U.S. companies have also moved to expand their presence in Congolese mining.

Traders and analysts say the combination of expected long-term demand and immediate supply risks has lifted prices and kept volatility elevated in the copper market.

Copper is widely used in power transmission, building wiring, electric-vehicle motors and data-center components because of its conductivity and durability. Sulfuric acid is commonly used in leaching and refining; disruptions to acid supplies can directly reduce refined copper output.