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AI Selloff Drains Copper Demand
10 Nov
Summary
- AI stock selloff impacts copper demand expectations.
- Chinese industrial users eager to buy depleted copper.
- US holds majority of global exchange copper stocks.
The artificial intelligence stock selloff has directly affected copper prices, reducing expectations for demand boost from data center construction. This market shift has led investors to reduce their long positions in copper contracts.
Conversely, Chinese industrial users are actively seeking to purchase copper, but their options are limited due to depleted stocks on the Shanghai Futures Exchange. Import premiums in China have reached record highs, reflecting this strong demand and tight supply.
The United States currently holds a substantial majority of global exchange copper stocks, over 60% of total inventories. This concentration of metal in the US has contributed to price stress in other global markets, including London and Shanghai.
