Copper snaps back as AI worries fade, shortages persist in China

Copper recovered on Wednesday as investors regained confidence in artificial intelligence companies and supply constraints in China continued to support the market, Business Recorder reported. The London Metal Exchange’s three-month copper contract was up 1% at $13,796 per metric ton by 1025 GMT, following a 1.6% decline a day earlier. Last week’s fall had been the metal’s steepest weekly retreat since March.

Earlier concerns that a Democratic sweep in US midterm elections could bring tighter AI rules had weighed on copper, given anticipated demand from the sector. However, strong results from AI infrastructure company CoreWeave helped revive optimism in technology shares, while Chinese smelter output fell and seaborne arrivals remained limited. China’s Yangshan premium for imported copper held at a record $230 a ton for a third straight day; aluminium also rebounded 1.3% to $3,050 a ton, while zinc, lead, nickel and tin posted smaller gains.