Copper futures drop amid Chilean mine cuts and AI demand. 5/14/26

July Copper futures recently saw their first downward session in five days, falling around 1% despite late buyers stepping in. Supply constraints are dominating the market as Cochilco data reveals a significant year-over-year production decline across Chile's three largest mines, totaling a drop of 43,000 metric tons. This production shortfall is further complicated by a sulfuric acid supply squeeze, raising input costs and sparking concerns over uncontracted second-half supply for Chilean operators. On the demand side, artificial intelligence continues to drive infrastructure growth. Major tech companies are accelerating data center capital spending, with AI-dedicated centers requiring approximately 47 tons of copper per megawatt—a 34% increase over conventional facilities. As energy transition sectors project sustained growth, this accelerating structural demand faces highly concentrated supply disruptions. Learn more about trading futures and options at CME Group: https://www.cmegroup.com/markets/metals.html #Copper #Commodities #DataCenters