Speculators rush into copper as sulphur supply risk and AI drive up prices
Global copper prices have climbed toward a seven-month high as disruptions in the sulphur supply chain combine with rising wiring demand from AI data centres. According to Nikkei, speculative long positions have crossed the 70,000-contract threshold, while cash premiums in the physical market have widened.
London Metal Exchange three-month copper contracts have approached US$10,500 per tonne, and Nikkei's analysis identifies two main drivers. The first is constraints on sulphur supply, which is putting pressure on both sulphuric-acid production and copper refining. The second is rising copper wiring demand from hyperscaler data centres outfitting AI GPU racks.
US Commodity Futures Trading Commission data show speculative long positions adding about 8,000 contracts week on week to cross the 70,000 mark. On the Shanghai Futures Exchange, the cash premium widened to 220 yuan, a signal that physical scarcity is intensifying. Chinese import buyers are said to be pulling forward deliveries scheduled for the next quarter.
Analyst firms say that if the price tests the US$11,000 threshold, electric vehicle and grid investment budgets could face fresh review. On the producer side, BHP, Rio Tinto and Codelco have published higher output targets; investment in recycling lines is also reported to be accelerating to capture richer scrap streams.
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