Copper falls, heads for fifth straight weekly drop on AI rout
XLB•Copper fell to a nearly four-month low of $13,456 per metric ton and was on course for a fifth consecutive weekly decline, down 1.8%. Goldman Sachs said the recent price correction was largely driven by volatility in AI-linked equities and investor positioning.
1. Copper extends decline
Three-month copper on the London Metal Exchange fell 0.5% to $13,519 per metric ton by 1000 GMT on Friday, after touching its lowest level since July 17. It was on course for a 1.8% weekly loss, extending a decline that began in mid-October.
2. China supply signals
Goldman Sachs attributed copper’s recent correction to positioning rather than loosening fundamentals, but said prices could remain subdued if markets anticipate an earlier slowdown in AI capital spending. The bank noted that copper supply in China was limited, with low inventories and high premiums: Shanghai Futures Exchange warehouse stocks fell 18.3% to 27,642 tons, while the Yangshan premium reached a record $285 a ton.
3. Other metals decline
Aluminium, zinc, lead and nickel also fell, with a strong dollar weighing on the metals complex. Tin rose 0.9% to $47,080 a ton.
