Copper extended last week's decline on Monday, falling as much as 0.6% in London as artificial intelligence stocks came under pressure. The metal, critical for data centers and power infrastructure, slipped following a second weekly decline. Investors braced for more megacap tech earnings and clues on whether strains on the AI trade will persist.
Stubbornly high energy prices also weighed on sentiment ahead of the Federal Reserve's policy meeting on Wednesday. The market priced in a nearly 10% chance of a rate hike, while bets of a hike before year-end remained over 70%. Copper supplies in China remained tight due to falling domestic output and metal flows to the US ahead of potential tariffs.
The Yangshan premium, a gauge of imported copper demand, hit its highest level since 2017. Still, doubts over US tariffs and weakening Chinese consumption into winter could ease market tightness. Copper fell 0.5% to $14,247.50 a ton on the London Metal Exchange.
Aluminum dropped 0.4% and nickel fell 0.9%.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing