Global copper prices have dropped to their lowest point in four months, falling 1% on Friday, November 6, following the US midterm election results. The decline comes after a 1.2% drop the previous day, as the outcome raised concerns about two key factors that had previously driven prices higher: the rapid expansion of data centers and the potential for US import tariffs on copper.
The Democratic Party's sweeping victory in the midterm elections has triggered a broader market sell-off on Wall Street, with the Nasdaq 100 index plunging over 6% on Thursday. This marked its worst single-day fall in six years, erasing $2.3 trillion in market capitalization, the largest single-session loss in history.
Copper prices had surged earlier in the year due to the data center buildout, as the metal is essential for cables, wiring, and power equipment. However, the heavy defeat of the Republican Party has sparked speculation that US import tariffs on copper may be less likely, which could tighten the global market. TD Securities noted that many traders believe aggressive copper tariffs are now less probable with the Democratic Party controlling Congress.
On the London Metal Exchange (LME), copper prices are currently at $13,786 per tonne. Meanwhile, in Shanghai, aluminium and zinc prices have each declined by 0.5%.