Copper prices rebounded on Friday, recovering from a sharp drop in the previous session. The three-month copper contract on the London Metal Exchange (LME) rose 1.8% to $14,334 per metric ton by 1615 GMT, after falling 1.9% to a five-week low the day before.
The recovery came as global stock markets stabilized, particularly in the tech sector, which had seen heavy selling due to concerns over the funding demands of artificial intelligence. Ole Hansen, head of commodity strategy at Saxo Bank, noted that the bounce in Nasdaq futures likely encouraged metals investors to re-enter the market.
Investors remained cautious, however, with the risk of further losses if copper prices break below the September low of $13,925. Concerns about excess inventories eased slightly after LME copper stocks rose by 800 metric tons, though they had surged by a fifth over the past week to 273,750 tons. In China, inventories in Shanghai Futures Exchange-registered warehouses dropped by 26.5%.
Other metals on the LME saw mixed performance. Nickel fell 1.6% to $15,865 per ton as traders awaited signals on potential output cuts in Indonesia. Aluminium gained 1.2% to $3,044, zinc advanced 2.2% to $3,752, lead added 0.6% to $1,909, and tin rose 1.2% to $50,700.