Copper set for first monthly loss since June as AI spending worries weigh
XLB•Copper fell 0.8% to $14,245 a ton and was set to decline 1.3% in October, its first monthly loss since June, as worries about returns from AI spending weighed on risk appetite.
1. Copper prices retreat
Three-month copper on the London Metal Exchange was down 0.8% at $14,245 a ton in official trading, after touching a one-week low of $14,166. The metal was set to lose 1.3% in October as higher oil prices and a slump in technology shares prompted a flight to bonds.
2. Tightness supports market
Copper continued to draw support from a premium of the LME cash contract over the three-month benchmark, which Neil Welsh of Britannia Global Markets said pointed to persistent near-term tightness. The Yangshan premium, a gauge of Chinese demand for imported copper, remained near a 13-year high at $205 a ton. Rio Tinto began restarting underground operations at its Oyu Tolgoi mine after a seismic event, while Chile’s copper output fell 15% year on year in September.
3. Other metals mixed
Tin fell 2.1% to $48,650 a ton amid concerns about AI-related spending, while its cash-contract premium reached $350 a ton, the highest since April 2024. Indonesia’s refined tin exports fell 18% year on year in September. Aluminium was steady, zinc and lead edged higher, and nickel fell 0.8%.
