Copper prices retreated on Thursday, pulling back from a two-week high reached in the prior session. Investors adopted a cautious stance, expressing concerns over demand from the artificial intelligence sector and elevated US inventories.
The three-month copper contract on the London Metal Exchange fell 0.8% to $14,363 per metric ton by 1705 GMT. This decline followed a peak of $14,875 in September, driven by optimism around AI data center construction boosting copper demand.
JP Morgan analyst Patrick Jones noted that sentiment had turned more cautious rather than outright bearish. Investors are particularly wary of potential US tariff inaction, which could reduce import demand and shift pricing power back to Chinese consumers.
Meanwhile, supply tightness in China was evident, with the Yangshan copper premium surging to $205 per ton, its highest level in over a decade. Other metals saw mixed movements, with LME zinc rising 0.3% to $3,877 per ton, while aluminium, nickel, and tin experienced declines.