Copper prices have surged to their highest levels in over a week, fueled by a resurgence in Chinese industrial activity and a massive wave of demand from the digital infrastructure sector. As of February 24, 2026, benchmark copper on the London Metal Exchange (LME) has reclaimed the **$13,000** per metric ton threshold, with some spot markets seeing prices as high as **$13,200**. The primary catalyst for this rally is the reopening of Chinese markets following the Lunar New Year holiday. Investors have returned with high expectations for manufacturing demand, bolstered by a significant **35%** year-over-year increase in power grid investment by China's State Grid. Total grid spending for 2026 is now projected to hit a record **574 billion** yuan, creating a massive floor for physical consumption. Beyond traditional industry, a new "AI metals frenzy" is reshaping the market. High-density data centers required for artificial intelligence are consuming copper at rates far exceeding traditional tech infrastructure. Analysts estimate that every **1GW** of new data center capacity requires nearly ten times the copper of a conventional facility. This structural shift has pushed prices up by more than **20%** over the last seven months. Supply-side constraints are further tightening the market. Global refined copper production growth is expected to slow to just **0.9%** in 2026, compared to **3%** last year. Major disruptions at key sites, such as the Grasberg mine in Indonesia, have removed roughly **500,000** tons from the global supply forecast. This has led to a projected market deficit of **330,000** tons for the current year. Market indicators show a complex picture. While LME warehouse stocks have ticked up to approximately **241,825** tons, total global inventories remain at critical levels relative to surging demand. Traders are also positioning ahead of potential U.S. tariff implementations, which could introduce a **15% to 25%** levy on refined copper by mid-year. Financial institutions have adjusted their outlooks to reflect this volatility. Citigroup and J.P. Morgan now project copper could reach **$12,500** to **$14,000** per ton in the coming months if supply deficits persist. While short-term corrections are expected, the long-term trend remains bullish as the transition to green energy and digital expansion makes copper one of the most strategic assets in the global economy.