Copper Demand Rises as AI, Defence and Tariffs Put Supply in Focus

Copper Demand Rises as AI, Defence and Tariffs Put Supply in Focus

Copper is becoming one of the most closely watched commodities in global markets, as demand from artificial intelligence, defence, electric vehicles and energy infrastructure continues to grow.

The metal is used across a wide range of industries. Missiles, fighter jets, power grids and data centres all require copper, making it a key material for both national security and the digital economy. Reports suggest the United States still relies heavily on imported copper, while proposed tariff changes could add further pressure to supply chains. A 15% tariff on refined copper imports from January 2027 has been discussed, with the possibility of higher rates in 2028.

This has brought attention to domestic copper producers. One company being watched by investors is Gunnison Copper, listed as GCU in Canada and GCUMF on the OTC market. The company operates in Arizona and has highlighted production of high-purity copper cathode at the mine site, using Rio Tinto’s Nuton technology. Rio Tinto has also announced a collaboration with Amazon Web Services to supply copper for US data centre infrastructure.

Gunnison’s wider project has also attracted attention after the company filed a preliminary economic assessment showing a post-tax net present value of about US$2 billion.

For new traders, the key lesson is not simply to buy a stock because a commodity is in demand. Instead, copper shows how supply, tariffs, technology growth and defence spending can all influence market sentiment.

Analyst forecasts remain positive, with some platforms showing a “strong buy” consensus and an average 12-month target of $1.30 for Gunnison Copper, although this is based on a small number of analysts.

As always, smaller mining stocks can be highly volatile, so traders should research carefully and manage risk.