Copper surges within 1% of all-time high on AI demand

Copper prices climbed to within striking distance of their all-time highs on Monday, driven by intensifying demand from artificial intelligence infrastructure buildouts in the United States and China that have tightened an already constrained global supply picture.

AI Data Centers Fuel Unprecedented Appetite

The metal rose to $6.64 per pound on Monday, less than 1% below its record high of $6.71, according to Investing.com. On the London Metal Exchange, copper gained $79 to reach $13,870 per metric ton on August 3. Copper has surged more than 60% since April 2025, with AI data centers running racks at up to 300 kilowatts — compared with the 10-20 kilowatts typical of conventional facilities — cited as a primary driver.investing+2

Nikkei Asia reported on Sunday that AI demand from both the U.S. and China is pushing copper toward record territory, with the metal up approximately 43% year-to-date and analysts projecting a supply shortfall of around 590,000 tons. S&P Global ↗ 1.05% forecasts that copper demand for data centers will more than double, rising from 1.1 million metric tons in 2025 to 2.5 million metric tons by 2040, with AI training accounting for 58% of total data center copper demand by 2030.spglobal+2

Supply Constraints Compound the Rally

The supply side offers little relief. A single 300-megawatt AI data center requires roughly 6,000 to 9,000 tonnes of copper — equivalent to the annual output of a small mine. The world needs between 194 and 229 million tonnes of new copper supply between 2024 and 2035 to meet baseline demand, according to S&P Global's analysis, yet only 62 million tonnes have been identified.paretoinvestor.substack

Copper first breached its previous all-time high above $6.58 per pound in May 2026, and has consolidated at historically elevated levels since. Trading Economics data showed the metal at $6.59 per pound on August 4, up 1.13% from the prior session and 50.73% over the past year.tradingeconomics+1

Technical Warning Signs Flash

Despite the momentum, technical indicators suggest caution. The relative strength index stood at 68.12 on the 4-hour chart — approaching overbought territory — while prices tested the upper Bollinger Band at $6.66. Analysts note that if the market rejects at the $6.71 former all-time high, a double-top pattern could trigger a pullback toward the $6.52 support zone.investing