Copper Prices Slump Amid AI Slowdown Fears

Copper prices are under pressure due to concerns over the impact of slowing artificial intelligence (AI) development on data-centre investment. Tech executives' calls for a slowdown in AI development have weighed on tech stocks, causing copper prices to retreat.

This added to pressure from improving exchange availability, which has eased some supply concerns that drove prices to record highs. Rising inventories and softer nearby spreads suggest that the extreme tightness across the London Metal Exchange (LME) market is beginning to moderate.

However, persistent mine-supply constraints should continue to support copper prices once current positioning unwinds, according to ING's Warren Patterson and Ewa Manthey.