Copper and aluminum prices retreated on Tuesday as investor anxiety regarding artificial-intelligence infrastructure spending fueled broader market uncertainty. Global technology stocks declined following warnings that the rapid expansion of data centers is becoming increasingly difficult to finance. South Korea's equity benchmark, often correlated with copper prices, slumped up to 7%.
While AI infrastructure is viewed as a key long-term demand driver for copper, the metal's 17% year-to-date rally has primarily been driven by fears of U.S. import tariffs. These tariffs have diverted significant volumes into the United States, reducing availability in other regions. BMI, a Fitch Solutions company, noted that while AI sentiment is not the sole driver of copper's performance in 2026, it is expected to shape market narratives in the coming years.
Copper fell 0.2% to $14,588 a ton on the London Metal Exchange, aluminum dropped 0.3%, and zinc lost 0.7%. Iron ore also declined, falling 0.3% to $90.70 a ton in Singapore, hitting its lowest level in two years.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing