Copper holds above $14,000 as investors weigh US election impact
XLB•Copper recovered from earlier losses to trade at $14,014 a metric ton, down 0.16%, as investors assessed the US midterm election results. The results reduced expectations for a tariff on refined copper imports, while investors also weighed possible effects on AI investment and metal demand.
1. Copper pares losses
Benchmark three-month copper on the London Metal Exchange was down 0.16% at $14,014 a ton after earlier falling as much as 1.53% to its lowest since August 3. The most-traded Shanghai Futures Exchange copper contract edged 0.41% lower to 107,670 yuan a ton.
2. Election shapes outlook
Investors assessed the election results for clues on AI regulation, US fiscal policy and the Iran war trajectory. Copper initially fell on concerns that tighter AI regulation could slow investment in AI infrastructure, a source of expected future metal demand, but losses narrowed as equities pared declines.
3. Tariff expectations shift
Ole Hansen of Saxo Bank said the election result reduced the likelihood of tariffs on refined copper imports, a shift that could weigh more heavily on prices in the near term than potential changes to longer-term demand. Expectations of a tariff had helped draw copper into US warehouses this year, tightening supply elsewhere and contributing to a record high in September.
