Copper prices approach nickel levels due to AI and EV demand

International copper prices are approaching historic highs, narrowing the price gap with nickel in an unprecedented trend. On September 10, copper three-month futures on the London Metal Exchange (LME) reached a record of $14,875 per tonne.

This surge is driven by rising demand from the artificial intelligence sector, which requires high-conductivity copper wiring for data center construction, as well as the global transition to electric vehicles and renewable energy infrastructure.

In contrast, nickel prices remain relatively low, with LME three-month contracts quoted at $15,977 per tonne. The current price of copper has reached approximately 88% of the value of nickel, a significant shift from 2007 when copper traded at only about one-seventh of nickel's price.