London copper ticks up but heads for weekly loss

London copper inched higher on Friday but headed for a weekly loss amid concerns over rising inflation and a selloff in AI-related stocks, while aluminium was on track for a fourth straight weekly decline.

Benchmark three-month copper on the London Metal Exchange rose 0.3% to $14,383.50 a metric ton by 0150 GMT but was down 1% for the week.

The most-traded copper contract on the Shanghai Futures Exchange fell 0.1% to 109,610 yuan ($16,379.75) a ton.

“The accelerating selloff we are seeing in the semiconductor/AI space is spilling over into copper.

The two areas have been tracking each other quite closely for much of the year and now seem to be heading south at the same time,“ Marex analyst Ed Meir said.

A selloff in AI-related stocks this week spread to credit markets as investors grew concerned that data-centre operators may not generate profits quickly enough to service their debt.

Data showed US producer prices increased by the most in 4-1/2 years in September, the latest indication of inflation broadening out beyond energy products.

Inflation tends to weigh on growth-dependent industrial metals by slowing economic activity.

Elsewhere, negotiations between Antofagasta Minerals and two striking unions at Chile’s Centinela copper mine showed no progress.

The Distrito Centinela and Minera Esperanza unions, which together represent more than 700 workers, began the walkout on October 7 after contract talks collapsed.

Citi is neutral on copper and aluminium in the near term at $14,000-$15,000 per ton and $3,000 per ton, respectively.

LME aluminium rose 0.4% to $2,997, but was down 1.7% for the week so far.

SHFE aluminium rose 0.3% after touching its lowest since July 21 on Thursday.

“What is behind the recent weaker tone is a sense that aluminium’s supply-demand balance is turning more comfortable,” Meir said.

Among other LME metals, zinc gained 0.3%, lead rose 0.5%, nickel fell 0.4%, and tin added 0.7%.

Among SHFE metals, zinc slipped 0.9%, lead fell 0.2%, nickel lost 2.1%, and tin firmed 0.9%.