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Copper price surge highlights data center demand and boosts miners’ profits
Copper traded at $6.32 per pound in New York and $13,895 per ton in London, while Freeport-McMoRan reported a 28% second-quarter profit gain despite a 7.3% revenue drop.
Copper is showing renewed strength as demand tied to data center buildouts continues to grow, a theme echoed by Yahoo Finance. The metal was trading at $6.32 per pound in New York and $13,895 per ton in London, which remains below May’s all-time highs.
Yahoo Finance also linked the strength to what it described as ongoing demand for copper used in data center wiring and related equipment, including high-purity forms used in electronics. The outlet said data centers consume roughly 25 to 47 metric tons of copper per megawatt of power, implying that a 100-megawatt facility could require about 2,500 to 5,000 tons.
Freeport-McMoRan, the largest U.S.-based copper miner, reflected that backdrop in its results. Barron’s, as cited by Yahoo Finance, reported the company delivered a 28% profit gain in the second quarter on July 23 despite revenue falling 7.3%, while Freeport-McMoRan’s shares were down 2.6% to $63.60 at the time.
The story also pointed to heavy technology-industry spending as a driver of future copper needs. Yahoo Finance said Alphabet spent $44.9 billion in the second quarter and raised its full-year spending outlook to $195 billion to $205 billion, adding that copper requirements could keep rising as data centers expand.
Latest closeCopper $6.329 ▼1.9%