Copper rebounds as inventories, stock markets stabilise

London metal prices rebounded on Friday as inventories stabilized and stock markets regained stability. The three-month copper price on the London Metal Exchange rose 0.8% to $14,190 per metric ton, after falling 1.9% to a five-week low the day before. Fear eased as a downturn in global tech shares lessened, following worries about AI's high funding demands.

"Today we’ve got the Nasdaq futures bouncing after that sell-off yesterday, and that’s probably why we’re seeing some metals investors getting back in," stated Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen. Despite investors' caution, the risk of further copper losses persisted, especially if prices fell below the September low of $13,925.

Copper inventories climbed by 800 metric tons on Friday, with a week-over-week increase of 20% to 273,750 tons. In China, warehouse inventories reported by the Shanghai Futures Exchange dropped by 26.5%. However, the US inventory concern lingered, as a surge in copper purchases due to potential tariff measures weighed on prices.

Nickel fell 1.8% to $15,825 per ton, as traders awaited clearer indications from Chinese entities regarding potential output cuts in Indonesian operations. The International Nickel Study Group had previously predicted a slight global surplus this year, reversing a prior deficit forecast. Aluminum, zinc, lead, and tin also saw minor price changes, with aluminum down 0.1% to $3,007 per ton, zinc up 1.1% to $3,710, lead unchanged at $1,898, and tin up 1.3% to $50,715.