Copper climbs on AI rebound, China demand strength

Copper advanced 0.7% to $14,421.50 per metric ton on the London Metal Exchange by 1030 GMT on Tuesday, Business Recorder reported. A recovery in AI-related shares and stronger buying interest in China supported the metal, while rising oil prices and a stronger US dollar limited the increase.

ING strategist Ewa Manthey said demand linked to AI infrastructure and constrained supply, particularly in China, were underpinning prices. The Yangshan premium reached $178 a ton on Monday, its highest in nearly 13 years, while the cash contract traded at a $206-a-ton premium to three-month copper, the widest since August 27. Shanghai copper inventories dropped more than 25% last week to 54,356 tons as smelters entered maintenance; North American stockpiles on the LME remained a concern. Other metals also mostly gained: aluminium rose 0.3%, zinc 0.7%, nickel and tin 0.6% each, while lead fell 0.1%.