Copper futures in the United States surged to a record high of $6.4 per pound on Monday, marking the strongest level ever recorded as growing supply disruptions and long-term demand expectations fueled aggressive buying activity across global commodity markets.
The sharp rise in copper prices comes amid escalating geopolitical tensions in the Middle East. The ongoing conflict between the United States and Iran has significantly disrupted exports of sulfur and sulfuric acid from the region since March — both of which are critical materials used in copper refining and heap leaching processes for anode production.
Global Copper Supply Faces Severe Pressure
The shortage of sulfuric acid has forced China to temporarily halt exports, creating a ripple effect throughout the global copper supply chain.
As a result, Chile — the world’s largest copper-producing country — is experiencing increasing pressure on its refining sector. Several major refining companies have reportedly reduced operating capacity due to limited access to essential processing materials, tightening global copper supply even further.
The latest developments have intensified concerns over the availability of refined copper at a time when worldwide demand continues to accelerate.
Data Centers and Electrification Drive Copper Demand
At the same time, demand for copper remains exceptionally strong, supported by the rapid expansion of artificial intelligence infrastructure and data center construction worldwide.
Major technology companies continue signing large-scale agreements to develop new data centers, significantly increasing future copper consumption. Copper plays a vital role in power transmission, electrical systems, renewable energy infrastructure, and smart grid technologies, making it one of the most strategic industrial metals in the global electrification trend.
China Manufacturing Growth Supports Market Optimism
Broader industrial demand is also receiving support from China’s manufacturing recovery. The country’s overall manufacturing PMI recently climbed to its highest level in more than five years, signaling stronger industrial activity and improved market confidence.
With supply constraints intensifying and long-term demand drivers remaining robust, analysts expect copper prices to stay elevated in the near term, reinforcing the metal’s strategic importance in the global energy transition and advanced technology sectors.
