Copper Prices Approach Record Highs on China Stimulus and AI Demand

Strong Market Fundamentals Drive Price Surge

Copper prices have surged to near record levels, driven by a combination of China's potential economic stimulus and growing demand from the AI sector. The London Metal Exchange (LME) copper price rose 1.6% to US$13,205 per ton on January 12, 2026, just below its recent peak of US$13,387.50 per ton from the previous week ¹

China's Economic Stimulus Boosts Market Sentiment

The primary driver of the recent price increase has been optimism surrounding China's economic policies. Market participants are expecting a significant fiscal stimulus package from China, the world's largest copper consumer, which is likely to boost domestic consumption and drive copper demand ¹

AI-Driven Demand Strengthens Market Fundamentals

In addition to China's stimulus hopes, the growing demand for copper from data centers supporting AI technology has provided additional support for prices. The increasing adoption of artificial intelligence is driving infrastructure development, particularly in data centers, which require significant amounts of copper for wiring and other components ¹

Market Performance and Technical Levels

The Shanghai Futures Exchange (SHFE) copper contract jumped 2.91% to 103,200 yuan (US$14,793) per ton during early trading on January 12. The contract had previously touched a record high of 105,500 yuan on January 6, demonstrating the strong upward momentum in copper prices ²