LONDON: Copper prices recovered on Wednesday as some investors viewed the recent retreat a good entry point as stock markets stabilise and amid persistent supply concerns.
Benchmark three-month copper on the London Metal Exchange was up 0.6% at $10,787 a metric ton by 1530 GMT.
LME copper had shed nearly 5% when it hit a near two-week low on Tuesday from a record peak of $11,200 on October 29.
“We’re seeing some recovery in the stock market ahead of Nvidia earnings tonight, so I think there’s some positive sentiment flowing into the metals market as well,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
“In copper, we’re seeing higher lows on the corrections, indicating that there are buyers sitting there waiting to get involved and they are not prepared to wait for a bigger drop.”
U.S. equities were slightly higher on Wednesday ahead of a high-stakes earnings report from AI poster child Nvidia.
Copper falls as tech valuation fears spread
The most active copper contract on the Shanghai Futures Exchange closed daytime trading 0.2% up at 86,080 yuan ($12,106.72) a ton.
A stronger Chinese yuan helped to stabilise the market by making dollar-priced commodities cheaper for Chinese investors.
Copper was also supported by supply concerns sparked by mine disruptions worldwide.
Freeport-McMoRan said on Tuesday that it plans to resume production at Indonesia’s Grasberg mine by July 2026, in line with previous guidance. Operations were halted in September after wet mud flooded one of the mines at the complex in September, killing seven workers.
LME lead underperformed, dipping 0.1% to $2,021 a ton after touching its weakest in two weeks.
Among other LME metals, aluminium advanced 0.9% to $2,804 a ton, zinc was flat at $2,989, nickel added 0.4% to $14,695 and tin gained 0.9% to $37,185.
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