London copper firms but heads for weekly loss
XLB•London copper rose 0.9% to $14,468 a metric ton on Friday but was down 0.5% for the week. Aluminium rose 0.8% to $3,010 a ton but was on track for a fourth straight weekly decline.
1. Copper tracks tech sentiment
Benchmark three-month copper on the London Metal Exchange rose 0.9% to $14,468 a metric ton by 0308 GMT, after reaching a near two-week low in the previous session. Prices were down 0.5% for the week. The most-traded Shanghai copper contract gained 0.4% to 110,170 yuan a ton.
2. AI stocks weigh on metals
Copper tracked sentiment in AI-related stocks as concerns about cloud company CoreWeave’s debt fueled worries about financing for the AI boom. Marex analyst Ed Meir said the semiconductor and AI selloff had spilled over into copper, with the two areas tracking each other closely for much of the year. US producer prices rose by the most in 4-1/2 years in September, a sign that inflation was broadening beyond energy products.
3. Aluminium remains under pressure
London aluminium rose 0.8% to $3,010 a ton but was down 1.3% for the week, while the Shanghai contract rose 0.8% after touching its lowest level since July 21. Meir said a more comfortable supply-demand balance was behind aluminium’s recent weaker tone. Citi was neutral on copper and aluminium in the near term, with price ranges of $14,000 to $15,000 a ton and $3,000 a ton, respectively. Negotiations between Antofagasta Minerals and two unions at Chile’s Centinela copper mine showed no progress; the unions, representing more than 700 workers, began a strike on October 7.
