Tight Supply Drives Copper Comeback Despite Tariff and AI Risks

Healthy demand and shortages outside the US helped copper recover on Wednesday after initial concerns that the US election might dampen expectations for copper tariffs and AI data centre demand. Benchmark three-month copper on the London Metal Exchange rose 0.2% to US$14,058 ($20,002.85) a tonne by 17:20 GMT, after earlier dropping as much as 1.5% to its lowest level since 3 August, a three-month low.

Copper Rebounds After Election Shock

Copper prices nevertheless drew support from robust demand and supply shortages in China, the world’s largest metals consumer. Meanwhile, the threat of US tariffs on refined copper has prompted substantial shipments to the US, tightening supply elsewhere and supporting prices. If the tariffs are ruled out, those stocks could return to the market and put pressure on prices.

President Donald Trump has strongly backed the AI sector, whose infrastructure build-out is expected to drive copper demand. Yet opponents of data centres were among the biggest beneficiaries of the Democrats’ landslide.

• The Yangshan copper premium, which tracks demand for imported metal, held at around US$200 a tonne—its highest level in more than a decade.
• LME nickel surged 3.5% to US$15,880 a tonne.
• Aluminium added 0.7% to US$3,067.
• Zinc climbed 0.6% to US$3,812.
• Lead was steady at US$1,884.
• Tin slipped 0.2% to US$47,365 after earlier hitting a seven-month low of US$46,065.
• Copper drew strength from robust demand and supply shortages in China, the leading metals consumer.
• A rebound in global stock markets and a softer dollar index lent support to metals, making dollar-priced commodities less expensive for buyers using other currencies.