Copper Prices Fall, Head for Worst Weekly Performance Since March Amid AI Market Rout

Copper prices decline for the fourth consecutive session as a technology stock sell-off raises concerns over artificial intelligence investments and future data centre expansion. However, tight global supplies and falling Chinese inventories provide some support to the market.

SINGAPORE, November 7, 2026: Copper prices extended their decline on Friday, November 6, heading towards their steepest weekly loss since March as a major sell-off in technology stocks weakened investor confidence in the global artificial intelligence (AI) investment outlook.

Benchmark three-month copper on the London Metal Exchange (LME) was down 0.8% at approximately $13,738 per metric tonne during Friday trading. Earlier in the session, prices dropped as much as 1.5% to $13,636 per tonne, their lowest level since July 30.

The metal was on track to record a weekly decline of approximately 2.9%, marking its worst performance since the week ending March 20.

The downturn came amid growing concerns that political developments in the United States and increased regulatory scrutiny could slow the massive investment cycle in AI infrastructure and data centres.

AI Stock Sell-Off Weighs on Copper Demand Outlook

Copper has become increasingly linked to developments in the artificial intelligence industry because of its extensive use in data centres, electricity transmission networks, cooling systems and power infrastructure.

The recent technology market rout has raised questions about whether the massive investments planned for AI infrastructure will continue at the pace previously anticipated.

Technology shares came under pressure following Democratic victories in the US midterm elections, which fuelled expectations of greater regulatory oversight of the AI industry.

The Nasdaq Composite recorded its steepest single-day decline in 19 months on Thursday, intensifying concerns across global financial and commodity markets.

According to Craig Lang, principal analyst at CRU, copper prices are increasingly responding to investor sentiment surrounding data centre expansion.

The uncertainty has prompted traders to reassess expectations for future industrial metal demand.

Chinese Copper Inventories Fall to Nearly Three-Year Low

Despite weakening market sentiment, tight physical supply conditions have limited copper’s decline.

Copper inventories monitored by the Shanghai Futures Exchange (SHFE) fell by more than 24% during the week to approximately 33,848 tonnes, their lowest level in almost three years.

The sharp decline highlights the continued tightness in China’s domestic copper market.

Meanwhile, the Yangshan copper premium, an important indicator of demand for imported copper in China, climbed to $210 per tonne on Thursday, matching its highest level since Shanghai Metal Markets began tracking the indicator in 2012.

These developments suggest that underlying physical demand remains relatively strong despite growing concerns about financial market volatility.

US Tariff Uncertainty Adds Pressure

Another factor influencing copper prices is uncertainty surrounding potential US tariffs on refined copper imports.

Earlier expectations of additional tariffs encouraged traders to move significant quantities of copper into the United States ahead of possible trade restrictions.

This resulted in substantial inventory movements and reduced the availability of metal in other global markets.

However, changing expectations about the likelihood of tariffs following the US midterm election results have weakened one of the factors that previously supported copper prices.

Market participants are now closely monitoring US trade policy and its potential impact on international copper flows.

Other Industrial Metals Also Under Pressure

The weakness in copper extended across several other industrial metals during Friday trading.

On the London Metal Exchange, aluminium, zinc, lead and nickel also recorded losses, reflecting broader concerns about global economic growth and industrial demand.

Tin was among the exceptions, recording gains during the session.

The movement highlights how uncertainty surrounding technology investments, trade policies and global economic conditions is influencing the wider commodities market.

Supply Constraints Could Limit Further Declines

Despite the recent correction, analysts remain cautious about interpreting the decline as the beginning of a prolonged downturn.

Ongoing challenges in global mine production, limited inventories and difficulties faced by Chinese smelters continue to provide fundamental support to copper prices.

Chinese smelters are experiencing pressure from deeply negative treatment and refining charges, while lower sulphuric acid prices are reducing another important source of revenue.

These conditions could further complicate the availability of refined copper in international markets.

Analysts have warned that the physical supply situation remains tight, particularly outside the United States, potentially limiting the extent of further price declines.

Outlook: Copper Market Faces AI and Supply-Side Uncertainty

Copper’s recent performance reflects the growing influence of artificial intelligence investment expectations on global commodity markets.

While concerns over a possible slowdown in data centre construction have weakened short-term sentiment, the long-term outlook for copper remains closely linked to electrification, renewable energy, electric vehicles, power infrastructure and expanding digital technologies.

The market is therefore facing two competing forces: uncertainty over future AI-related demand and persistent constraints in global copper supply.

Investors will closely monitor developments in US trade policy, China’s industrial demand, global technology investment and mining production to assess the direction of copper prices in the coming weeks.

For now, copper remains under pressure, but falling inventories and supply-side challenges suggest that the market’s underlying fundamentals have not significantly weakened.