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Copper prices rose for a third consecutive session, supported by expectations of strong demand from artificial intelligence (AI) infrastructure despite broader concerns over the global economic outlook.
Access Bank Group said copper rose as much as 0.4% on the London Metal Exchange, supported by gains in Asian equities following a technology-led rally on Wall Street.
The bank said copper was benefiting from expectations that increased investment in AI would generate significant additional demand for data centres, electricity networks and related infrastructure in the coming years.
Read more: Copper prices climb on supply concerns as oil extends rally
“AI investment will drive substantial additional demand for data centres, electricity networks and associated infrastructure over the coming years,” the bank said in its market commentary.
Copper prices were also consolidating after reaching a record high last month, when concerns over possible U.S. tariffs triggered a rush of shipments into the United States.
The surge in shipments raised concerns about tighter copper availability in other markets, contributing to price support.
Access Bank said the resilience of copper and other industrial metals, despite government bond yields reaching multi-decade highs, suggested expectations of strong structural demand were continuing to offset broader macroeconomic concerns.
Trading in industrial metals, however, is expected to remain subdued during China’s Golden Week holiday, which could reduce market liquidity and amplify short-term price movements.
Performance across other industrial commodities was mixed.
Nickel fell 0.6%, while iron ore futures in Singapore declined 0.5% to $91.30 per tonne.
The contrasting movements reflect differing demand conditions across industrial commodities, with copper continuing to benefit from longer-term expectations around electrification and technology investment.
For Zambia, one of Africa’s major copper producers, sustained demand for the metal remains important because of copper’s contribution to export earnings and foreign exchange inflows.
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