Sino-American Trade Tensions Drive Copper Reserve Growth

{ "articleTitle": "Copper Prices Hit Record Highs Amid US-China Trade Tensions and Green Energy Demand", "articleDescription": "Three-month copper futures on the London Metal Exchange surpassed $14,800 per metric ton in mid-September, driven by US-China trade rivalry and anticipated tariffs. Russia's presidential envoy for investment has labeled the metal \"the new gold\" as demand from electric vehicles and AI data centers accelerates.", "articleBody": "

Record Price Surge Driven by Geopolitical and Industrial Factors

\n

In mid-September, three-month copper futures on the London Metal Exchange (LME) climbed above $14,800 per metric ton, while prices on Comex rose to $6.9285 per pound, hitting an all-time high. Copper prices have risen for three consecutive years, with the metal climbing 47% in the past year alone.

\n

Azernews reported that US-China trade rivalry is fuelling demand for copper stockpiles, with buyers in China stepping up activity and sharpening competition for supply. A large volume of copper was shipped into the United States this year in anticipation of President Donald Trump's decision to slap tariffs on imports of the metal.

\n

Kirill Dmitriev, Russia's presidential envoy for investment and economic cooperation and head of the Russian Direct Investment Fund (RDIF), stated that copper's investment appeal has climbed to the level of gold. On his X account, Dmitriev called copper \"the new gold,\" a statement made against the backdrop of the sharp rise in prices.

\n\n

Industrial Demand from Electric Vehicles and AI

\n

The scale of copper demand is expanding due to requirements for green energy infrastructure and artificial intelligence. An electric vehicle requires roughly 80 kilograms of copper, compared with around 20 kilograms in a conventional car. Solar panels, charging stations and new power transmission lines stretching across entire regions all require copper.

\n

The rise of artificial intelligence has become one of the most powerful engines of copper demand, as data centers built for AI devour colossal amounts of copper for power cables and transformers.

\n

World output of refined copper in the first five months of 2026 rose by about 3% year on year to 12.05 million tonnes, while consumption grew 2.2% to 11.58 million tonnes. The International Copper Study Group (ICSG) reckoned that the market surplus in January-May jumped 89% against the same period a year earlier, from 117,000 tonnes to 221,000 tonnes.

\n\n

Long-Term Projections for Green Energy Transition

\n

By 2050, the world will need to extract four times more copper than it does today to fully switch to \"green\" energy. A study by researchers from the University of