Scrap Copper "Sold Out Immediately"! AI and Grid Demand Drive Copper Price Surge, Supply Shortage Key Challenge

Perceiving Beating AI News: Despite the traditional off-season for copper consumption from July to August, the waste copper market in Taizhou, Zhejiang, was unusually hot. The price of some high-quality waste copper has exceeded 90,000 RMB/ton, even reaching 100,000 RMB/ton. Market demand has increased two to three times compared to before, with some goods being pre-booked by customers even before being dismantled.

Recycled copper enterprises are also operating at full capacity. Zhejiang Juhua Group plans to increase its recycled copper capacity to 100,000 tons this year, and is currently operating at nearly full capacity, with orders scheduled for about a month ahead. Data shows that in the first half of this year, the Shanghai Nonferrous Metals Exchange copper spot price index rose by 31%; from February to August, COMEX and LME copper futures rose by 52% and 58%, respectively.

Industry insiders believe that the core of this round of copper price increases is still the supply-demand imbalance: overseas copper mine output contraction and rising raw material costs have led to a slowdown in supply growth, while AI computing centers, power grids, and new energy infrastructure continue to drive additional copper demand. As we enter the traditional peak consumption season from September to October, whether the supply-demand contradiction can be further intensified remains a focus of attention.

However, analysts warn that the rapid rise in copper prices has already put significant pressure on downstream processing enterprises, and demand transmission is not smooth. The momentum of this round of price increases may have entered the middle to late stage. In the medium to long term, the global progress of copper mine resumption and the pace of AI demand realization will be the two main factors determining the direction of copper prices.