Copper pares losses on AI rebound but set for worst week since March
XLB•Copper pared losses on Friday as AI stocks recovered, but remained on track for a 2.8% weekly decline, its steepest since the week ended March 20. Shanghai warehouse stocks fell more than 24% to 33,848 tons, while the Yangshan import premium reached a record $217.50 a ton.
1. Copper prices retreat
Benchmark three-month copper on the London Metal Exchange was down 0.5% at $13,771.50 a metric ton at 1700 GMT, after falling as much as 1.5% to its lowest level since July 30. It was heading for a fourth straight daily decline and a 2.8% weekly loss, its biggest since the week ended March 20.
2. Supply signals remain tight
Copper stocks in Shanghai Futures Exchange warehouses fell more than 24% this week to 33,848 tons, their lowest in almost three years and less than a day's worth of Chinese consumption. The Yangshan premium, a gauge of Chinese appetite for copper imports, rose to a record $217.50 a ton, while cash LME copper traded at a $150-a-ton premium over the three-month contract.
3. Market factors
Copper losses eased as AI stocks recovered after a selloff tied to concerns that Democratic control of Congress could lead to tougher AI regulation. Deutsche Bank metals research head Daniel Ghali said markets were digesting the implications of a “blue wave,” including reduced perceived potential for US import tariffs on refined copper. Stronger-than-expected US jobs data also led traders to raise bets on an interest rate hike next month.
