Copper is gleaming

Susannah Streeter, chief investment strategist at Wealth Club, explains the latest on copper.

She said: “Copper is gleaming, with the red metal hitting record highs as demand surges amid the AI revolution and Trump’s tariffs distort the market.

“Traders have been rushing copper towards the US ahead of potential tariffs on refined copper from 2027, attracted by the prospect of higher American prices. That has pushed US inventories to record levels while stocks elsewhere have become increasingly tight.

“At the same time, there have been genuine supply disruptions, including mining problems and a smelter outage in Indonesia, adding to concerns about how quickly global production can respond to stronger demand.

“And demand for copper is increasingly being turbocharged by the AI revolution. Data centres require enormous amounts of electricity, and copper is crucial for the cables, transformers and power networks needed to deliver it.

“Electric vehicles, renewable energy projects and the wider electrification of the economy are adding further sources of demand.

“This has all helped provide a bit of a tailwind for London-listed miners and demonstrates why the FTSE 100 can often show more resilience when other tech-reliant markets are struggling, given its heavyweight exposure to mining and commodities.”