Copper hits four-month lows; focus on demand, AI and US rates
XLB•Copper fell to a four-month low as concerns about weak demand, AI industry troubles and possible US interest rate hikes weighed on prices. Benchmark copper was down 1.5% at $13,610 a ton, after touching $13,515.
1. Copper falls to July low
Benchmark copper on the London Metal Exchange fell 1.5% to $13,610 a metric ton, after reaching $13,515, its weakest level since July 20. The selloff accelerated after news that Nvidia CEO Jensen Huang was stepping down.
2. Demand and rates weigh
Analyst Tom Price said soft industrial demand and falling technology shares were adding pressure, while persistent US inflation has prompted markets to consider the possibility of a 50-basis-point Federal Reserve rate increase at its December 8-9 meeting. A stronger dollar can make dollar-priced metals more expensive for buyers using other currencies.
3. Aluminium supply tightens
The cash aluminium premium over the three-month contract rose above $175 a ton, its highest in 36 years, partly as stocks in LME-registered warehouses fell nearly 56% since January to 226,350 tons. Three-month aluminium declined 1.3% to $3,030 a ton; zinc fell 0.8%, lead rose 0.3%, tin slipped 0.2% and nickel was little changed.
