Copper Rises on AI Demand and Asian Stock Strength

Copper prices surged for the third consecutive day, driven by strong Asian stock markets and persistent AI-related investment optimism. The London Metal Exchange (LME) saw copper prices climb as much as 0.4%, building on the previous day’s significant rise. By 10:42 a.m. in Singapore, copper was trading at $14,438 per ton, up 0.1% from the previous close.

The rally in copper prices is closely tied to the broader tech sector, particularly AI advancements. Investors anticipate increased demand for copper due to the expansion of data centers and the electrical infrastructure required to support them. However, trading volumes were lighter than usual due to the Golden Week holiday in China, which kept Chinese markets closed.

While copper was the standout performer, other base metals remained relatively stable. Nickel fell by 0.6%, and Singapore iron ore futures dipped 0.5% to $91.30 per ton. Despite global bond yields reaching multi-decade highs, risk assets have largely continued their upward trajectory.

Market analysts caution that the copper market could shift rapidly due to tariff discussions and supply uncertainties. The current AI-driven demand for copper highlights a direct link between technological advancements and industrial metal consumption.