(Bloomberg) — Copper wavered as traders weighed investor angst around overheated spending on metal-intensive AI infrastructure against continued supply risks.
AI and technology stocks dropped across global markets following a slew of warnings that the rapid buildout of data centers will become more difficult to finance. South Korea’s equity benchmark — which has been correlated with copper prices at times this year — slumped as much as 7%.
Copper bulls argue that AI infrastructure will be a key source of demand in the coming decade, and any doubts about the pace of spending can hit sentiment. Still, the major driver for the red metal’s 18% rally this year has been the threat of US import tariffs, which has pulled huge volumes into the country and cut availability elsewhere.
“While not acting as the sole rationale behind the copper price performance in 2026 thus far, AI-driven sentiment is expected to continue to shape, if not dominate, the narrative in the coming years,” BMI, a Fitch Solutions company, said in a note.
The pull of metal into the US has helped tighten the copper market, as have a series of disruptions at key mines. The cash price for copper was at a premium of about $132 a ton to benchmark three-month futures on Tuesday, a condition called backwardation that indicates there’s not enough immediate supply.
In China, meanwhile, the Yangshan import premium — a gauge of demand — last week hit its highest level since 2022.
Copper was 0.2% lower at $14,596 a ton on the London Metal Exchange as of 1:31 p.m. local time. Aluminum dropped 0.6% and zinc steadied.
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