As copper futures prices rose this month due to supply shortages, the stock prices of related companies in the domestic stock market have also gained momentum.

According to the Korea Exchange and Yonhap Infomax on August 23, the 3-month copper futures contract on the London Metal Exchange (LME) closed at 14,215.50 dollars per ton on August 21 (local time).

This marks a 3.08% increase for the month, bringing prices close to the record high of 14,527.50 dollars recorded last January.

The rise in copper futures prices is driven by growing demand coupled with insufficient supply.

Copper is a non-ferrous metal used across all stages of electricity generation, transmission, and consumption, with demand surging recently in AI data centers and the defense sector.

In particular, data centers not only use copper directly inside their facilities but also heavily rely on it for power grid infrastructure construction.

In response, S&P Global projected that global copper demand will surge by 50%, rising from 28 million tons last year to 42 million tons by 2040.

Kang Song-chul, a researcher at Eugene Investment & Securities, explained, "The fundamental cause of increased copper demand is the rise in electricity consumption. Aside from traditional economic-linked demand, the replacement and expansion of power transmission and distribution infrastructure, as well as growing demand from AI data centers and the defense sector, are driving up copper demand."

He added, "If there is no meaningful supply expansion beyond currently planned investments, a supply shortage of approximately 10 million tons is expected by 2040."

Additionally, supply reduction issues originating from Chile—home to major copper mines—flared up this month, further pushing up prices.

Ok Ji-hee, a researcher at Samsung Futures, reported, "As a second winter storm hit the Atacama region in Chile starting August 13, Lundin Mining (a mining company) downgraded its copper production forecast for 2026."

Influenced by these factors, the stock prices of copper-related companies in the domestic stock market have risen this month.

Shares of non-ferrous metal manufacturer Lee Ku Industrial rose by 10.76%, while Taihan Cable & Solution (14.87%), LS (9.93%), and Poongsan (9.27%) also saw gains.

Analysts in the securities industry expect the copper supply shortage to persist for a while.

Researcher Ok Ji-hee pointed out that although copper futures prices dipped slightly over the past few days as inventories temporarily flowed in due to short-term profit-taking incentives, "signs of fundamental physical shortages still remain." She noted, "Available LME inventories surged by about 60% compared to the beginning of last week to 166,776 tons, but this is still less than half of the peak seen four months ago."

She also stated, "As the possibility of the U.S. imposing tariffs on refined copper remains undecided, structural imbalances in global copper supply and demand are likely to persist through the second half of the year."