LONDON: Copper slid for a third straight session on Tuesday to its lowest in almost two weeks, as industrial metals were hit in a broad selloff of risky assets sparked by fears of an overvalued tech sector and fading hopes of a Federal Reserve rate cut.
Benchmark three-month copper on the London Metal Exchange was down 0.8percent at USD10,690 per metric ton in official open outcry trading. The metal, expected to benefit from the artificial intelligence boom, earlier fell as much as 1.1percent to USD10,660.50, its lowest since November 5.
Copper is now down around 4.5 percent from the all-time peak of USD11,200 struck on October 29 on concerns over mine supply. But one trader attributed its recent decline to a “correction” rather than to the AI bubble bursting. Separately, copper miner Freeport-McMoRan said it plans to restore large-scale production at its Grasberg mine in Indonesia from the second quarter of 2026, following a fatal incident that forced operations to halt in September.
The cash LME contract was trading at a USD39-a-ton discount to the three-month forward, indicating no shortage of near-term metal. The Yangshan copper premium, an indicator of Chinese import demand, has fallen to USD32 a ton, the lowest since July. Traders were also awaiting the release of US September jobs data on Thursday, which was delayed by the government shutdown.
“Risk appetite is unlikely to measurably improve amid this AI fallout and doubts about ... the Fed’s next move,” broker Marex said in a note, adding that a strengthening yuan, which increases Chinese purchasing power, was providing some relief. Aluminium fell 1percent to USD2,785 a ton, also losing ground for a third day in a row and hitting its lowest since October 21.
Tin shed 0.6 percent to USD36,675, while lead dipped 0.2 percent to USD2,034. Zinc lost 0.7 percent to USD2,972, touching its lowest since October 20, while nickel slipped 0.2 percent to USD14,625, after hitting a seven-month low.
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