Base Metal Prices Jump Globally as AI Demand Fuels Chinese Metal Surge

On July 29 the London Metal Exchange reported that most base metal contracts ended the day higher. Three‑month copper closed at $13,622 a tonne, down 0.16%, while aluminum rose 0.89% to $3,176.5, nickel up 1.15% to $17,140, lead up 0.61% to $1,897, tin up 0.83% to $53,850 and zinc up 0.15% to $3,573. Analysts linked the moves to renewed Middle‑East tensions that heightened worries about supply disruptions, even as markets remained cautious ahead of the U.S. Federal Reserve’s July rate decision.

The China Non‑ferrous Metals Industry Association released half‑year data showing strong price gains across the sector. From January to June, copper prices rose 31.4% and aluminum 18.8%, while core specialty metals saw even larger jumps: tin (+40%), tantalum (+158%) and indium (+60%). The surge was driven by accelerated construction of artificial‑intelligence computing infrastructure, which lifted demand for these key metals. Experts warned that broader macro‑economic and geopolitical uncertainties keep market sentiment volatile.