Copper Prices Hit Weekly Low Amid AI Skepticism

Copper prices on the London Metal Exchange dropped to a one-week low last Friday. The decline followed a sell-off in technology stocks and a surge in oil prices, which dampened investor appetite for risk assets. Market skepticism regarding the returns on artificial intelligence investments contributed to the downward pressure on futures.

Simultaneously, Brent crude reached its highest level since April following reports that Donald Trump received a briefing from a top U.S. commander on military options for Iran. This geopolitical tension further influenced market volatility.

Despite the fall in futures, the physical copper market remains tight. Spot copper traded more than US$170 a tonne above benchmark three-month futures. In China, the Yangshan premium reached its highest level since 2017, driven by low domestic inventories and production cuts by copper smelters struggling with increased costs.