Copper nears $15,000 amid AI and tariffs
The price of copper has reached a historic high near $15,000 per ton, marking an increase of over 16% since the beginning of the year. The ongoing high demand for the metal is driven by its use in electrical grids, electric vehicles, renewable energy projects, and data centers related to artificial intelligence. This situation comes amid concerns over potential supply disruptions due to the possible implementation of a new 15% US tariff starting in 2027, which could rise to 30% in 2028. As a result, large quantities of copper have been stockpiled before the tariffs take effect, causing significant price hikes. Experts predict that global demand for copper could increase by 50% by 2040, with a possible supply deficit of 10 million tons due to mining restrictions and the challenges associated with developing new mines. Despite the potential for short-term price declines if the tariffs are delayed or reduced, the outlook suggests that copper prices are likely to continue rising in the long term.
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