Scrap Copper Sells Out Instantly Upon Arrival: AI and Power Grid Demand Fuel Copper Price Rally, Supply Gap Emerges as Core Contradiction

Beating AI Express News: Despite being the traditional off-season for copper consumption from July to August, the scrap copper market in Taizhou, Zhejiang has seen exceptional activity. Prices of some high-quality scrap copper have exceeded 90,000 yuan per ton, even hitting 100,000 yuan per ton. Market demand has surged two to three times compared to earlier periods, with some goods pre-booked by clients before even being processed. Recycled copper enterprises are also operating at full capacity. Zhejiang Judong Co., Ltd. plans to raise its recycled copper production capacity to 100,000 tons this year, and is currently operating at almost full capacity, with orders booked for about a month ahead. Data shows that the copper spot price index of the Shanghai Nonferrous Metals Exchange rose by 31% in the first half of this year; from February to August, COMEX and LME copper futures rose by 52% and 58% respectively. Industry insiders believe that the core driver of this round of copper price hikes remains supply-demand mismatch: shrinking overseas copper mine output and rising raw material costs have slowed supply growth, while AI computing centers, power grids, and new energy infrastructure continue to generate new copper demand. As the traditional peak consumption season arrives from September to October, whether the supply-demand gap will further widen remains a key point of attention. However, analysts caution that the rapid rise in copper prices has already exerted significant pressure on downstream processing enterprises, with demand not transmitting smoothly, meaning the upward momentum of this round may have entered its mid-to-late stage. In the medium and long term, the progress of global copper mine resumption and the pace of AI demand realization will be the two main lines determining copper price trends.