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%.
Copper Price Surges
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. “The surge comes amid tight supply, declining inventories in China, and surging demand for data center construction,” according to the letter.
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