Copper futures hit a record high on Wednesday as demand for the base metal stays strong amid a rush to build data centers and the continued electrification of the global economy.
It is integral to manufacturing electric vehicles, power grids and wind turbines, especially as the global economy electrifies.
The International Energy Agency is expecting power demand from data centers to more than double to over 1000 terawatt-hours (TWh) in 2026 from 460 TWh in 2022.
Copper production growth forecast for 2024 has been cut to 0.5% compared with a 3.7% growth estimated by ICSG last October 2023.
Anglo American, a major producer, said it would cut copper output in 2024 and 2025 as it seeks to cut costs.
Persons:
ICSG
Organizations:
Aurubis, Bank of America, International Energy Agency, Study, Quantum Minerals, Citi, London Metals Exchange
Locations:
Hamburg, Germany