Copper prices on the London Metal Exchange hit an all-time intraday high, lifting trading sentiment across commodity markets. The rally is mainly backed by physical demand expectations. Global construction of computing data centres accelerates alongside national power-grid modernisation plans. As a core conductive material for power transmission, copper faces steadily expanding consumption demand. AI servers, transformers, power cables and energy storage converters consume massive volumes of copper, and the computing infrastructure boom creates substantial incremental copper consumption worldwide.

Supply-side constraints underpin copper’s upward trend. Large new copper mines face lengthy approval procedures and require three to five years for construction, limiting near-term capacity expansion. Mines in major producing nations encounter labour negotiations, stricter environmental supervision and inadequate infrastructure, disrupting output growth. Uncertain mining regulations in top copper producers such as Chile and Peru make market participants cautious about medium and long-term copper supply outlook.

Within China, power grid investment speeds up as the new power system develops. Grid renovation and UHV projects boost domestic copper consumption. Domestic copper smelting capacity remains stable, yet China relies heavily on imported copper concentrate. Domestic smelters cannot fully satisfy rapidly rising downstream demand with local raw materials. Analysts warn that persistently high copper prices squeeze profit margins for downstream manufacturers including cable and home appliance producers and raise manufacturing costs. Once the Federal Reserve cuts benchmark interest rates, a weaker US dollar will further support dollar-denominated industrial metals. Traders will continue to watch LME copper inventory levels, global mine output statistics and capital spending executed for China’s power grid projects.