LONDON: Copper prices fell to their lowest in nearly two and a half months on Tuesday as risk appetite weakened across industrial metals markets amid renewed concerns over AI spending, uncertainty ahead of US elections and Middle East tensions.
Benchmark three-month copper on the London Metal Exchange was down 2.5 percent at USD13,981 a metric ton by 0956 GMT after touching USD13,833 — its lowest since August 19.
“Investors are pulling back from cyclical assets as technology shares come under pressure,” said ING commodities strategist Ewa Manthey. “That is prompting fresh questions about how much near-term metals demand will come from AI and data-centre investment.”
Investors are also assessing the potential implications of the midterm elections for fiscal policy and government spending. Also, they are monitoring the US-Iran conflict that has clouded the growth outlook.
Oil prices rose after US strikes on Iran’s Qeshm Island in the Strait of Hormuz. The yuan weakened sharply after China’s central bank said it would raise the amount of foreign currency that financial institutions must set aside as reserves. This has made dollar-priced metals more expensive for buyers in the top consumer.
Continuing signs of tight physical supply in China limited losses. The Yangshan copper premium, a gauge of demand for imported metal, remained near USD200 a ton — its highest in more than a decade. On the technical front, copper’s decline below the 100-day moving average at USD14,053 reinforced bearish momentum, turning that level into resistance. Initial support was seen at the 200-day moving average around USD13,589.
Among other LME metals, aluminium lost 1.5 percent to USD3,046, zinc dropped 2.1 percent to USD3,809.50, lead fell 1.0 percent to USD1,886.50, nickel eased 0.9 percent to USD15,410 and tin slid 3.8 percent to USD47,675.
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