Copper edges lower as higher oil, AI doubts weigh
XLB•Copper fell 0.25% to $14,320.50 a metric ton on the London Metal Exchange, as higher oil prices and concerns about AI spending weighed on demand expectations. Analysts raised their estimated global copper surplus to 125,000 tons in 2026 and 92,000 tons in 2027.
1. Copper slips
Benchmark three-month copper fell 0.25% to $14,320.50 a metric ton on the London Metal Exchange, while the most-traded Shanghai Futures Exchange contract dropped 0.6% to 109,050 yuan a ton. Brent crude futures gained 1.44% after Yemen's Iran-aligned Houthis stepped up attacks on Saudi Arabia.
2. Demand outlook
Commonwealth Bank commodities analysis director Angela Durrant said higher oil prices can weigh on demand and industrial production. Technology stocks slumped over concerns about high AI spending, while participants at last week's London industry gathering downplayed AI as a significant copper-demand driver. Analysts raised their 2026 global surplus estimate to 125,000 tons and nearly doubled their 2027 forecast to 92,000 tons.
3. China support
Signs of continued good demand in China, where inventories have waned, supported copper. The Yangshan premium fell 2.44% to $200 a ton on Thursday, but remained close to its highest level in more than a decade.
