Copper futures climbed to a record high above $6.60 a pound early Wednesday as supply disruptions, tightening inventories and booming AI-related infrastructure demand fueled a rally in the metal and the United States Copper Index Fund (NYSE:CPER).



The ETF, which tracks the copper futures contracts on the COMEX exchange, surged to a new record high of $40.46 on Tuesday. It has risen 15.7% since the start of the year and nearly 10% over the past month.



With assets under management of $735.9 million, CPER trades in an average daily volume of 727,000 shares and has a steep expense ratio of 1.06%.



<h2>Copper Price Surges</h2>



In a Tuesday post on X, The Kobeissi Letter said copper prices are now up roughly 75% since October 2023 and more than 40% over the past 12 months. &#34;The surge comes amid tight supply, declining inventories in China, and surging demand for data center construction,&#34; according to the letter.



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<blockquote>BREAKING: Copper prices have surged to a record $6.58 per pound, now up +75% since October 2023 and over +40% in 12 months. The surge comes amid tight supply, declining inventories in China, and surging demand for data center construction. Furthermore, supply disruptions at the… pic.twitter.com/eMBLP1o9U4— The Kobeissi Letter (@KobeissiLetter) May 12, 2026</blockquote>
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<h2>Global Supply Disruptions</h2>



The letter said that the supply disruptions at the world's second-largest copper mine in Indonesia are driving the copper prices higher. Freeport-McMoRan Inc. (NYSE:FCX) said Monday it still expects Indonesia's Grasberg copper mine to return to full production by the end of 2027.



Concerns over global supply disruptions are also highlighted by billionaire investor Robert Friedland, who warned about the potential ripple effect from the closure of the Strait of Hormuz. He emphasized that such disruptions could lead to a shortage of critical precursor materials, notably sulphuric acid, which is essential for copper production and agriculture.



<h2>China Export Surges</h2>



China's exports surged 14% year-over-year in April, driven in part by strong shipments of clean-tech products and industrial components that require large amounts of copper. This has intensified the already tight copper market, according to the letter.



Benzinga Edge Stock Rankings indicate that CPER maintains strong pricing trends in the short, medium and long term, with a strong Momentum score in the 81st percentile.



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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.



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Photo courtesy: Ziadi Lotfi via Shutterstock

TECK

Copper prices have reached record highs above $6.60 per pound, driven by supply disruptions and increased demand from AI-related infrastructure. The CPER ETF, which tracks copper futures, surged to $40.46, marking a 15.7% increase this year. The price of copper has risen approximately 75% since October 2023, with significant contributions from declining inventories in China and supply issues at major mines. China's exports also rose 14% in April, further tightening the copper market.

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Copper Prices Hit Record High As AI Data Center Boom Fuels Global Supply Crunch, Pushing CPER ETF Higher