Copper Price Decline Narrows as AI Stock Selloff Eases and Chile Supply Concerns Mount

Deep News17:42

Copper prices pared their weekly losses as the technology stock selloff eased, reducing concerns about demand for the metal used in data centers and power infrastructure, putting the market on track to avoid a third weekly decline in four weeks.

London copper futures, which hit a record high in September, rose as much as 1.3% during intraday trading, with the weekly loss narrowing to approximately 1.5%. European stocks stabilized early in the session, providing temporary relief to AI-related assets that had been under sustained pressure. Copper has still gained roughly 14% this year.

A surge of copper flowing into the United States, driven by expectations that the Trump administration may impose tariffs on refined metals, has supported prices. However, traders remain uncertain about whether Washington will actually implement such a policy.

On the supply side, Chilean Finance Minister Jorge Quiroz stated that the country's copper output is expected to decline by 8% to 9% this year, signaling potentially tighter supply ahead. As the world's largest copper producer, Chile has seen its already strained production outlook further deteriorate due to a series of fatal accidents at multiple mines and extreme weather conditions.

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