Copper is back on the scene: prices have surged to historical highs in global markets this week, driven by supply concerns and demand for AI-driven electrical infrastructure. This movement is driven by more than one powerful theme, several simultaneously operating.

On the supply side, uncertainties surrounding production, particularly at major mines, are prominent. News regarding Freeport-McMoRan's return to full-capacity production at its Grasberg mine in Indonesia is keeping supply risk alive in the market. While the company states production will return to normal by the end of 2027, the expectation of production in the second half of 2026 falling below previous estimates reinforces the perception of tightness in the copper market.

In addition, a contraction in sulfuric acid supply is a significant issue. Sulfuric acid is a critical input in some copper production processes, and logistical risks from the Middle East and export restrictions from China are putting pressure on production costs. Goldman Sachs also points out that potential tightness in sulfuric acid and sulfide supply could affect a portion of the global copper supply.

On the demand side, the story of copper extends beyond that of a classic industrial metal. AI data centers, power grids, transformer investments, cooling infrastructure, electric vehicles, and renewable energy projects have become key drivers of copper demand in the medium to long term.

This week's news flow also highlights data center investments, supply disruptions, and sulfuric acid shortages as contributing to the record price surge in copper. Therefore, copper is now being monitored not only as an indicator of global industrial activity but also of AI and electrification investments.

Among US stocks that could be directly impacted by this theme, Freeport-McMoRan (FCX), Southern Copper (SCCO), BHP (BHP), Rio Tinto (RIO), and Teck Resources (TECK) stand out. FCX, as one of the largest publicly traded copper producers, is highly sensitive to price movements with its Grasberg and US operations, while SCCO, with its strong copper production and low-cost profile, is closely watched during copper rallies. BHP and Rio Tinto, despite their more diversified mining portfolios, can be monitored as global players that may positively differentiate themselves from this theme due to their large projects aimed at increasing copper supply.

In summary, the rise in copper is fueled by the simultaneous pricing of supply fragility, production costs, low inventory perception, AI-driven electricity infrastructure investments, and the global electrification theme. Therefore, investors can closely monitor not only the price of copper but also global miners and companies with copper-related activities such as FCX, SCCO, BHP, RIO, and TECK.