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Copper prices have surged significantly, rising from $4 to $5 per pound since January 2023, due to increasing demand for AI infrastructure and recent tariff announcements by President Trump, which could impose a 50% tariff on imports. As a result, copper hit a record $5.50 per pound following the announcement.
The International Energy Agency (IEA) forecasts that copper demand will increase by 50% through 2050, driven by the growing needs of AI and construction industries. In contrast, mining supplies are expected to decline, potentially supplying only half of the world’s copper needs by 2040.
Mining companies like Freeport-McMoRan Inc. have seen stock increases, rising 23% year-to-date and a remarkable 215% since 2020. Other metals, including rare earth materials essential for AI technology, are also experiencing significant price hikes as the U.S. aims to boost domestic production amid concerns over dependency on China.
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