China’s monthly Copper Industry Climate Index rose again in October 2025, signaling resilient sector momentum. According to the latest results from the national copper-industry monitoring model, the index reached 42.7, up 0.3 points from September and remaining solidly within the “normal” range.
The leading index climbed to 80.9, an increase of 1.0 point, indicating strengthening forward-looking growth drivers. Meanwhile, the coincident index dipped to 77.9, down 1.7 points, reflecting short-term fluctuations in current industry operations.
Clear Signals From Index Movements
As a core gauge of China’s copper-industry health, the two-month rise in the climate index underscores the sector’s underlying resilience. The notable increase in the leading index is particularly significant: this indicator reflects future trends and suggests that both global economic recovery and accelerating AI computing power are steadily improving copper’s supply–demand fundamentals.
The temporary pullback in the coincident index mainly stems from fluctuations in downstream consumption and does not alter the sector’s overall positive trajectory. Most sub-indicators remain within the “normal” range, with only a few end-use indicators showing short-term adjustments.
Dual Engines Support Industry Momentum
Global economic recovery continues to underpin copper demand. Manufacturing PMIs in major economies are rebounding from previous lows, while industrial growth in emerging markets remains strong. This has driven overseas refined-copper consumption to post five consecutive quarters of positive growth.
In China, property-market stimulus—such as purchase subsidies and eased restrictions—has supported incremental improvement in construction-related copper demand. Combined with ongoing investments in power-grid upgrades and renewable-energy projects, these trends reinforce domestic consumption.
AI computing power is opening new demand frontiers. A single AI server uses three times more copper than a traditional server, while hyperscale data centers can consume up to 3,000 tons per year. As the global AI compute race intensifies, copper demand from data centers and computing-network infrastructure is surging. At the same time, the global green-energy transition continues to deepen, with rising solar and wind installations and strong demand for transmission-network upgrades—all amplifying copper’s industrial consumption potential.
Market Performance Echoes Sector Sentiment
Improving fundamentals are increasingly reflected in market pricing. In October 2025, SHFE copper broke through historical highs, with the monthly average rising 7.02% MoM and 12.01% YoY. LME copper averaged 6.46% higher MoM, reaching a year-to-date peak.
Inventories remain at historically low levels. LME copper stocks fell 6.12% MoM, while SHFE inventories—despite modest accumulation—were still 28.78% lower YoY, offering strong price support.
Outlook
With the leading index signaling continued improvement—and supported by global economic recovery, expanding AI computing demand, and rapid renewable-energy deployment—the copper industry is poised to maintain a stable upward trend.
In the short term, market participants should monitor the pace of downstream demand recovery and inventory changes. Over the medium to long term, structural demand from the global energy transition and digital-economy expansion will remain the industry’s fundamental growth engine.
Industry players are encouraged to focus on opportunities in AI computing infrastructure, power-grid upgrades, and renewable-energy development, while preparing for short-term demand fluctuations.
Source：Changjiang Nonferrous Metals Network