Copper Prices Fall on the London Metal Exchange

Copper prices fell on the London Metal Exchange (LME): a sell-off in tech stocks and rising oil prices heightened concerns about global growth. Copper decreased by 0.2% to $14,332.50 per ton by 11:30 Shanghai time.

Market pressures

A disappointing tech earnings season has heightened doubts about AI spending. Geopolitical tensions around Iran pushed Brent to its highest since April, as reported by WSJ. This led to a retreat from risky assets at the end of a moderately positive week for industrial metals.

“The sharp decline in tech stocks has intensified market skepticism about returns on AI investments, leading to a retreat from risk and pressure on copper,” stated a note from Guangzhou Futures Co. Industrial metals, especially copper, have been tied to sharp fluctuations in tech stocks this year, although other factors are also at play, such as uncertainty over U.S. import tariffs and oil volatility.

Other metals and Rio Tinto

Investors are also monitoring the situation at Rio Tinto's major mine in Mongolia, where underground mining has been halted after a rockfall injured three people. Copper is heading for a slight decline in October, breaking a three-month streak of gains. Aluminum remained almost unchanged at $3,084 per ton, heading for a second monthly decline. Zinc retreated from its highest since September 25 but is ending the month with gains.