Copper was on track for a third weekly loss in four weeks as a selloff in technology stocks deepened, sapping risk appetite across markets, including for the metal used in data centers and power infrastructure. Futures traded above $14,150 a ton in London, down almost 2% this week and extending a retreat from a record set in September.
The global slump in tech stocks intensified on Friday, as earnings from major companies failed to reassure investors about the durability of the artificial-intelligence trade. The stock selloff is putting great pressure on metals from copper to gold, said Fan Rui, an analyst at Guoyuan Futures Co. "It is affecting short-term sentiment on metals given demand from other sectors remains bland."
Copper remains about 14% higher this year, aided by a major influx of metal into the US on speculation that the Trump administration will introduce a levy on refined metal. Still, some traders doubt Washington will actually follow through. On the supply side, output may tighten as Chile's production is expected to fall 8% to 9% this year, according to Finance Minister Jorge Quiroz. That would worsen the outlook for a slump in the top-mining nation, which has seen pits affected by a string of deadly accidents and extreme weather.
In China, a shortage of material is forcing smelters to deepen production cuts ahead of negotiations on next year's concentrate supply. Refiners plan to process less concentrate, with some starting maintenance and running at minimal rates, according to people familiar with the matter. Copper was 0.6% higher at $14,160 a ton on the London Metal Exchange in Singapore trading, after swinging between gains and losses. Other metals were mixed, with nickel down 1.5% at $15,875 a ton and zinc marginally higher.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing