Copper prices have retreated as major technology executives called for a slowdown in AI development, which negatively impacted tech stocks and dampened expectations for data-centre investment, according to ING analysts Warren Patterson and Ewa Manthey [1]. This shift in tech sentiment has contributed to concerns about copper demand, particularly from the data-centre sector, a key driver of recent price gains [1].
Additional pressure on copper prices has come from signs of improving exchange availability, including rising inventories and softer nearby spreads, which indicate that the extreme tightness previously seen across the London Metal Exchange (LME) market is beginning to moderate [1]. The easing of supply concerns, combined with a stronger dollar and cautious sentiment ahead of the Federal Reserve meeting, has weighed on the broader base metals complex [1].
ING notes that in the near term, copper could remain under pressure as stretched positioning unwinds. However, persistent mine-supply constraints are expected to continue supporting prices once the current market positioning stabilizes [1].
CONCLUSION
Copper prices are currently facing downward pressure due to AI slowdown fears and improving supply conditions on the LME. While short-term sentiment remains cautious, ongoing mine-supply constraints may provide support for prices in the longer term. Market participants are advised to monitor positioning and supply dynamics closely.