Copper slumped to its lowest level since July as a political shakeup in Washington threatened to blunt two key bullish drivers: the rapid buildout of AI infrastructure and the risk of US import tariffs on the metal. Industrial metals have joined a broader flight from risk since Democrats swept Congress, while technology stocks tumbled on concerns over tighter regulation of artificial intelligence.
Copper, widely used in cables and wiring for data centers and power equipment, fell as much as 0.8%, following a 1.2% decline on Thursday. The Republican defeat, fueled by angst over inflation, has also prompted fresh speculation about whether expanded US import tariffs on copper are likely. Tariff prospects had kept US prices higher and tightened the global market by pulling large volumes into American stockpiles. On Thursday, that price gap disappeared.
TD Securities said in a note that many traders believe aggressive copper tariffs are now less likely with the Democratic Party controlling Congress, with affordability being the Achilles heel for the governing party heading into 2028.
Copper dipped 0.4% to $13,786 a ton on the London Metal Exchange as of 9:23 a.m. in Shanghai. Aluminum and zinc fell 0.5%.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing