Copper Finds Support on Supply Concerns

Copper futures fell toward $6.5 per pound on Friday, sliding for the second straight session as disappointing earnings updates triggered another selloff in tech and AI stocks. The metal plays a crucial role in the global AI expansion due to its extensive use in data centers and power infrastructure, leaving prices particularly sensitive to shifts in technology market sentiment. Investors also grew increasingly concerned about a potential Fed rate hike later this year following hot PCE inflation data and persistent energy-driven price pressures. Despite the recent pullback, copper continued to receive support from tightening physical supplies in China, the world’s largest consumer of the metal, as reflected in rising import premiums. This trend underscores growing competition for copper supplies both within and outside China, as earlier concerns over potential US import tariffs prompted traders to redirect shipments toward American warehouses, reducing availability in other markets.

Copper decreased 9.01% to 6.0469 USD/Lbs

Copper futures fell to around $6.60 per pound on Thursday, ending a four-session winning streak as traders took profits following recent gains. Sentiment was also dampened by disappointing earnings from Alphabet and Samsung, which revived concerns over the sustainability of artificial intelligence investments and weighed on risk appetite. Despite the pullback, copper remained near a two-week high amid tightening physical supplies in China, the world’s largest consumer of the metal, as reflected in rising import premiums. The Yangshan copper premium, a key indicator of Chinese demand for imported copper, surged to $205 per ton on Wednesday, its highest level in more than a decade. The increase highlights intensifying competition for supplies both within and outside China, as earlier concerns over potential US import tariffs encouraged traders to divert shipments toward American warehouses, tightening availability in other markets.