Copper prices approach historic highs amid supply deficit and AI demand

Copper prices recently approached historic highs, reaching $14,800 per ton. This rally is driven by five converging factors: the global energy transition, the massive infrastructure requirements of artificial intelligence, US tariffs on imported copper, a structural supply deficit, and the long 10-to-15-year development cycles required for new mining projects.

Market distortions have emerged due to US tariffs, causing a price premium on the COMEX exchange compared to the London Metal Exchange (LME). This trade tension has increased demand for refined copper in the United States and created uneven distribution in other markets.

In response to these market dynamics, mining conglomerate Grupo México and its subsidiary Southern Copper are positioned to benefit. Grupo México's shares reached a new record high of 237.83 pesos, while Southern Copper, which operates primarily in Mexico and Peru, has seen a significant rise in its NYSE valuation. Analysts from Citigroup project that copper could maintain high levels, potentially reaching $14,500 per metric ton by the end of the year.