ECONOMY

Analysis: Can AI and U.S. Tariffs Carry Copper to New Highs?

Published: Dec. 15, 2025 1:33 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Copper prices have hit consecutive record highs since late November, driven by a convergence of supply shocks and a U.S. interest rate cut.

The critical question for the market is whether two dominant forces — soaring demand related to artificial intelligence (AI) and a preemptive U.S. stockpiling drive ahead of potential tariffs — can sustain the rally and propel prices even higher.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Copper prices have reached record highs due to supply shortages, major mine production cuts, and a U.S. interest rate cut.
Increased demand from AI data center expansion and U.S. stockpiling ahead of potential tariffs are key market drivers; CITIC forecasts 500,000 tons in new AI-related demand next year.
Risks include high prices deterring buyers and reversed stockpiling if policies change, but analysts expect long-term support from AI and green energy sectors.

AI generated, for reference only

Who’s Who

CITIC Securities: CITIC Securities is a financial institution that provides estimates and forecasts related to the copper market. They project that global AI data center expansion will generate nearly 500,000 tons of new copper demand next year. Furthermore, CITIC Securities forecasts that the average copper price on the London Metal Exchange will exceed $12,000 per ton next year.

AI generated, for reference only

What Happened When