Copper is down by 2%

Copper futures climbed toward $6.50 per pound on Monday, snapping a two-day decline as the selloff in technology stocks driven by AI concerns lost momentum, lifting sentiment toward the metal. Copper remains a key material in the global AI expansion due to its widespread use in data centers, power grids, and electrical infrastructure, making prices particularly sensitive to shifts in technology sector sentiment. Broader market sentiment also improved as oil prices declined following reports that President Donald Trump intends to allow more time for diplomatic efforts before deciding whether to resume military strikes against Iran. Previously, elevated oil prices weighed on copper demand expectations amid concerns over potential central bank rate hikes and weaker global economic growth. On the supply side, production from top copper producer Chile fell to its lowest level in at least two decades in the third quarter, with the country anticipating only a modest recovery next year.

Copper decreased 2% to 6.4497 USD/Lbs

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.