Copper Hits Four-Month Low Amid AI Shift

Copper hit its lowest level in almost four months on Friday, heading for its fifth straight weekly loss as traders adjusted positions following leadership changes at Nvidia, according to OilPrice. Three-month copper on the London Metal Exchange fell 0.5% to $13,519 a metric ton as of 1000 GMT, after touching $13,456—its weakest point since July 17. The downward trend began before Jensen Huang resigned as Nvidia president, CEO, and director, with Goldman Sachs attributing the correction to positioning in AI-linked equities rather than fundamental weakness.

Financing and Demand Pressures

Analyst reports from UBS and JPMorgan warn that Nvidia may pull back from financing deals that support AI data centers, potentially delaying construction timelines and reducing immediate copper demand. UBS analyst Timothy Arcuri noted that Nvidia has served as a key capital source for neoclods and AI developers, while JPMorgan analysts indicated that new funding deals could face higher costs or extended timelines. Meanwhile, Panmure Liberum analyst Tom Price highlighted that persistent US inflation and potential Federal Reserve rate hikes continue to pressure demand.

Physical Inventories in China

Despite equity market corrections and financing adjustments, physical market indicators in China point to robust demand. Chinese buyers paid a record $285-a-ton Yangshan premium on Friday, while copper stocks in Shanghai Futures Exchange warehouses declined 18.3% over the week to 27,642 tons, marking the lowest level since December 23.

Key facts

• Three-month copper on the London Metal Exchange fell 0.5% to $13,519 a metric ton.
• Jensen Huang resigned as Nvidia president, CEO, and director, with Colette Kress stepping in as interim CEO.
• Chinese buyers paid a record $285-a-ton Yangshan premium on Friday.
• Shanghai Futures Exchange warehouse stocks fell 18.3% during the week to 27,642 tons.