Copper prices edged higher last week which we interpreted as constructive considering the turbulence unfolding in oil prices and the “AI Trade” – one of the industrial metals biggest drivers in recent years has been its role in global electrification: The green energy transition, spanning electricity grids, EVs, and renewables is now considered the primary structural driver of incremental copper consumption growth, with AI infrastructure increasingly cited as an additional demand catalyst.
Electrical Networks is the fastest-growing area of copper demand, driven by grid investment, renewables, and AI data centres. Data centres alone accounted for ~1.4% of refined copper demand in 2025 and are projected to reach ~5% by 2029. As the chart below illustrates copper held firm through July while many of the traditional AI Trades plunged ~30%.
- We remain bullish towards copper, still believing a test of at least US$15,000 is likely before Christmas.
MM remains bullish towards copper ~US$13,800/MT
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