LONDON: Copper prices rose on Monday towards record highs with the mood dominated by optimism about robust demand in top consumer China and from data centres needed for artificial intelligence.
Benchmark copper on the London Metal Exchange gained 1.9 percent to $13,240 a metric ton in official rings from an earlier $13,323. Last week the metal used to make cable for conducting electricity hit a record $13,387.50 for a gain of more than 50 percent since the start of last year.
Traders said China’s plans to roll out a package of fiscal policies to boost demand and ensure the economy gets off to a good start this year was a positive for all industrial metals.
Meanwhile, the global landscape for copper demand is changing alongside increasing take up of electric vehicles, the build out of data centres and upgrades and expansions of power grids worldwide.
“Copper remains central to grid expansion, renewables and EV infrastructure,” analysts at ING said in a note.
“New sources of demand are also emerging, with data centres and AI infrastructure becoming major consumers of metals such as copper and aluminium.”
Expectations of shortages over coming years due to lack of new supplies will help keep copper prices elevated.
“Limited new project approvals combined with elevated disruptions/production downgrades has resulted in very low levels of mine production growth in 2025 and we forecast limited growth in 2026,” analysts at UBS said.
Overall, industrial metals were supported by a softer US currency which when it falls makes dollar-priced metals cheaper for holders of other currencies and boost demand.
Aluminium rose 1.3 percent to $3,177 a ton, zinc added 1.2 percent to $3,177, lead firmed 0.7 percent to $2,064.5, nickel climbed 2.4 percent to $18,125 and tin jumped 5.5 percent to $48,050.
Prices of tin, used to make semiconductors, earlier touched $48,500, within reach of the all-time high of $51,000 hit in March 2022.
Traders said market talk of a government clampdown on illegal tin mining in Indonesia was behind the latest surge.
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