Copper falls, heads for fifth straight weekly drop on AI rout
Copper slipped to its lowest in almost four months on Friday and was on course for a fifth weekly dip in a row on mounting concerns around AI investment. Benchmark three-month copper on the London Metal Exchange was down 0.5% to $13,519 per metric ton as of 1000 GMT after earlier hitting $13,456, its lowest since July 17. The metal was on course for a 1.8% drop this week, having lost ground every…
Copper prices reached a four-month low on Friday and were poised for a fifth consecutive weekly decline due to growing uncertainty surrounding AI investments, according to a report. The benchmark three-month copper on the London Metal Exchange fell 0.5% to $13,519 per metric ton, its lowest since July 17. It was expected to drop by 1.8% that week, with losses persisting for six weeks since mid-October.
The London Metal Exchange's copper price had fallen by 7% over the past month, driven by volatility in AI-related equities, which plummeted following the Democratic victory in U.S. midterm elections. Goldman Sachs attributed the recent copper price correction to positioning rather than weakening fundamentals. Copper positioning might remain cautious if equity markets anticipate an earlier slowdown in AI capital spending while data-center construction continues.
China, the top consumer of copper, had low inventories and high premiums, with Shanghai Futures Exchange warehouses copper stocks falling 18.3% to 27,642 tons that week, the lowest level since December 23. The Yangshan copper premium, an additional charge on top of LME prices reflecting China's demand for imports, hit a record $285 a ton. Aluminum, zinc, and lead also experienced declines, with tin being the only gainer that week.
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