Copper climbs on AI rebound, China demand strength
Copper rose on Tuesday as sentiment around AI stocks recovered and demand strengthened in top consumer China, although higher oil prices and a firmer dollar capped gains. Benchmark three-month copper on the London Metal Exchange was up 0.7% to $14,421.50 per metric ton as of 1030 GMT after ending the previous session little changed. Prices were finding support from rebounding AI stocks, with…
Copper prices climbed on Tuesday as investor sentiment improved due to a rebound in AI stocks and stronger demand in China, the world's biggest consumer of the metal. However, the surge was tempered by higher oil prices and a stronger dollar, which made copper more expensive for investors using other currencies. The benchmark three-month copper price on the London Metal Exchange increased by 0.7% to $14,421.50 per metric ton as of 1030 GMT, following a lackluster performance in the previous session.
Support for the metal's price was anticipated from the AI sector's upward trend, with expectations that AI infrastructure expansion would boost demand for copper. The London Metal Exchange copper contract traded at a $206-a-ton premium over the three-month forward, the highest since August 27. Copper stocks in London rose the previous week, but the heavy concentration of inventories in North America raised concerns about regional supply bottlenecks.
In China, stocks fell more than 25% to 54,356 tons as smelters entered maintenance. The Yangshan premium, which measures China's appetite for copper imports, reached a nearly 13-year high of $178 a ton on Monday, indicating intense competition for available metal. While the tight supply situation was expected to keep prices supported, there may be resistance at these elevated levels from price-sensitive demand.
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