en.Wedoany.com Reported - The main contract of China's Shanghai copper futures recently quoted at 104,020 yuan/ton, up 300 yuan from the previous trading day's settlement price, firmly holding above the 104,000 yuan mark; spot copper prices in the Yangtze River region also rose, maintaining the high range above 104,000 yuan. The sustained upward trend in copper prices has altered traditional cyclical fluctuation logic, with market focus shifting from "why prices are rising" to "whether high prices can be sustained." An analysis of three core sectors can shed light on the current demand structure of the copper market and future price trends.
Power grid infrastructure provides the most solid support for copper prices. China's power grid renovation and ultra-high voltage (UHV) construction have entered a concentrated implementation phase, with distribution network upgrades, old line renovations, and UHV backbone network projects being launched intensively. Orders at power equipment manufacturers are robust, and demand for copper in cables continues to be released, offsetting weak demand from traditional real estate and home appliance sectors. Grid construction, characterized by policy support, stable construction schedules, and rigid demand, serves as the core foundation supporting high copper prices.
The computing power economy has become a new engine for copper consumption growth. With large-scale construction of data centers and computing hubs, demand for high-end, high-frequency, high-speed copper foil is on the rise, replacing traditional telecommunications as the largest incremental driver of copper consumption. Scenarios such as high-voltage power distribution, copper busbars, and liquid cooling pipes in computing rooms consume more copper than traditional ones, increasing copper intensity per unit of computing power. China's leading copper foil companies reported a pre-tax profit increase of over 486% in the first half of 2026, with supply unable to meet demand, confirming the consumption capacity of the computing power sector.
The new energy sector continues to contribute incremental growth. Automotive Industry" target="_blank">New energy vehicles and photovoltaics (PV) are both maintaining development momentum. High-voltage wiring harnesses, motors, and battery copper foil in new energy vehicles, as well as power distribution equipment for PV power stations and energy storage supporting facilities, are all high-copper-consumption scenarios. As the penetration rate of new energy vehicles increases, PV installed capacity grows, and charging pile infrastructure accelerates, copper consumption in the new energy sector is rising year by year. The three major sectors—rigid demand from the grid, the explosion of computing power, and steady growth in new energy—form a multi-dimensional demand system.
Market concerns also exist. Ultra-high copper prices are squeezing profits for midstream and downstream processing enterprises, with some companies showing caution in order-taking, small-scale production cuts, and conservative stockpiling. The pressure of transmission to end-users is gradually emerging, limiting further breakthroughs in copper prices. Industry analysts state that while the current copper market has sufficient structural incremental demand, a sustained price surge requires stronger signals. Whether copper prices can break new highs in the future depends crucially on the pace of inventory destocking. The market needs to monitor the sustained destocking momentum of social inventories and exchange inventories. The order fulfillment rates of cable and copper foil companies, as well as stockpiling efforts ahead of the peak season, will be key indicators for judging the future trend of copper prices. Overall, the copper market has bid farewell to traditional cyclical logic, and a new era of demand dominated by computing power and new energy has arrived. High-level fluctuations with resilient upward movement may become the mainstream trend for copper prices in the second half of the year.
