Copper prices surge amid AI and grid demand, supply shortage intensifies

ME News report, August 26 (UTC+8), Beating AI Brief: During the traditionally sluggish copper consumption period of July and August, the scrap copper market in Taizhou, Zhejiang, has experienced unusual vigor. Prices for high-quality scrap copper have surpassed RMB 90,000 per ton, reaching as high as RMB 100,000 per ton, with market demand increasing two to threefold compared to previous levels—some goods have been pre-ordered by customers even before being dismantled. Recycled copper producers are also operating at full capacity. Zhejiang Judong Co., Ltd. plans to increase its recycled copper production capacity to 100,000 tons this year and is currently running at near-full capacity, with orders booked for approximately one month ahead. Data shows that the Shanghai Nonferrous Metals Exchange copper spot price index rose 31% in the first half of this year; between February and August, COMEX and LME copper futures rose 52% and 58%, respectively. Industry experts believe the core driver of this copper price surge remains a supply-demand mismatch: overseas copper mine output has contracted, and rising raw material costs have slowed supply growth, while demand from AI data centers, power grids, and new energy infrastructure continues to expand. As September and October mark the traditional peak consumption season, market participants are closely watching whether the supply-demand imbalance will intensify further. However, analysts caution that the rapid price rise has already placed significant pressure on downstream processors, with demand transmission remaining sluggish—suggesting that the current upward momentum may be entering its middle to later stages. In the medium to long term, the pace of global copper mine restarts and the realization of AI-driven demand will be the two key factors determining copper price trends. (Source: BlockBeats)