Copper rises to a record level as supplies are tightened and demand remains strong
According to CNBC’s network, copper futures in the United States rose to around $6.90 per pound on Thursday, hitting a new record level briefly before ending the session lower. The metal’s gain was driven more by a supply shortage and rising demand for electricity and energy, rather than broad-based economic growth.
Michael Widmer, head of metals research at Bank of America, said the rise is mainly attributable to supply-related factors, pointing to weak growth in mine production and disruptions in Chile. Meanwhile, William Osenato from the Barchart platform explained that demand generated by data centers and power grids tied to the expansion of artificial intelligence is the primary factor supporting higher copper prices.
The report also noted other factors that add to supply pressures, including the possibility that the United States could impose tariffs under Section 232 on copper, China tightening its measures on the availability of copper scrap, and the decision by the Democratic Republic of the Congo to ban the export of copper and cobalt concentrates
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According to CNBC’s network, copper futures in the United States rose to around $6.90 per pound on Thursday, hitting a new record level briefly before ending the session lower. The metal’s gain was driven more by a supply shortage and rising demand for electricity and energy, rather than broad-based economic growth.
Michael Widmer, head of metals research at Bank of America, said the rise is mainly attributable to supply-related factors, pointing to weak growth in mine production and disruptions in Chile. Meanwhile, William Osenato from the Barchart platform explained that demand generated by data centers and power grids tied to the expansion of artificial intelligence is the primary factor supporting higher copper prices.
The report also noted other factors that add to supply pressures, including the possibility that the United States could impose tariffs under Section 232 on copper, China tightening its measures on the availability of copper scrap, and the decision by the Democratic Republic of the Congo to ban the export of copper and cobalt concentrates
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