Copper Prices Surpass 90,000 Yuan/Ton, Driven by AI and Power Grid Demand

From July to August, the waste copper market in Taizhou, Zhejiang, has been exceptionally hot, with some high-quality waste copper prices exceeding 90,000 yuan per ton, even reaching 100,000 yuan per ton. Market demand has increased two to three times compared to before, with some goods being pre-ordered by customers even before dismantling. Recycled copper enterprises are operating at high capacity, with Zhejiang Judong Co., Ltd. planning to increase its recycled copper production capacity to 100,000 tons, currently operating at nearly full capacity, with orders booked for about a month. Data shows that in the first half of this year, the copper spot price index at the Shanghai Nonferrous Metals Exchange rose by 31%; from February to August, COMEX and LME copper futures increased by 52% and 58%, respectively. Industry insiders believe that the core reason for the rise in copper prices is the mismatch between supply and demand: a contraction in overseas copper mine output and rising raw material costs have slowed supply growth, while AI computing centers, power grids, and new energy infrastructure continue to release new copper demand. After entering the traditional consumption peak season from September to October, whether the supply-demand contradiction can be further strengthened remains a concern. Analysts remind that the current rapid rise in copper prices has put pressure on downstream processing enterprises, and the transmission of demand is not smooth; the momentum of this round of price increase may have entered the mid-to-late stage. In the medium to long term, the pace of global copper mine resumption and the speed of AI demand realization will become the two main lines determining the trend of copper prices.

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