Copper falls as LME inventories rise and technology shares retreat
On-warrant stocks rose by 70,100 tonnes over two days, while uncertainty over potential US tariffs also weighed on copper.
Copper fell on Oct 22 amid rising exchange inventories and weaker appetite for risk following a selloff in AI-related shares. At 9.34am local time, the London Metal Exchange (LME) price stood at US$14,105.50 a tonne, down 1.8%.
The metal had dropped by as much as 2%, reaching US$14,076 (RM57,414) a tonne. Earnings from major technology companies failed to ease investor concerns about the staying power of the artificial intelligence (AI) trade, which has supported copper demand for data centres and power infrastructure.
LME on-warrant inventories increased by 70,100 tonnes across two days. Spot prices exceeding futures prices — known as backwardation — encouraged holders to deliver copper against short positions instead of extending hedges at a loss.
Most incoming metal was delivered in the US. Comex futures have moved close to LME prices, reducing the incentive to send copper to US warehouses. Uncertainty about whether the US will introduce tariffs on refined copper has also contributed to the retreat from last month’s US$14,875-a-tonne record.
Supply risks remain, with workers threatening strike action at Teck Resources Ltd’s Highland Valley Copper operation, Canada’s largest copper mine.
Other metals also weakened. Aluminium lost 1% to US$3,023.50, while nickel slipped 0.6%. In Singapore, iron ore touched US$89.45 a tonne after falling as much as 1.7%, its lowest level in almost two years.
