London copper ticks up but heads for weekly loss

London copper edged up 0.3%, reaching $14,383.50 per metric ton in early trade on Friday, according to Business Recorder, although the metal was still heading for a 1% weekly decline. Sentiment was dented by mounting inflation worries and a sell-off in AI-linked equities, while LME aluminium was set for its fourth consecutive weekly drop. Shanghai's most-traded copper contract slipped 0.1% to 109,610 yuan ($16,379.75) a ton.

Marex analyst Ed Meir said the faltering semiconductor and AI shares were spilling into copper, since the two had tracked each other closely for much of the year. The AI slump also reached credit markets, where investors feared data-centre operators might not earn enough quickly to repay their borrowings. Separately, US producer prices in September posted their largest jump in four and a half years, a sign that inflation is spreading beyond energy.

Inflation generally slows economic activity, which weighs on industrial metals that rely on growth. In Chile, Antofagasta Minerals and two unions at the Centinela mine made no progress in talks, with the walkout beginning October 7 involving more than 700 workers. Citi keeps a balanced stance on both metals for now, seeing copper between $14,000 and $15,000 a ton and aluminium near $3,000.