Copper Prices Fall as US Election Clouds AI Demand and Tariff Outlook Copper prices dropped to their lowest level since July, falling as much as 1.5% to around $13,642 per ton on the London Metal Exchange. The decline reflects growing concerns that political changes in the US could weaken two major drivers of copper demand: expanding AI infrastructure investment and the possibility of higher US import tariffs. A broader selloff in technology stocks has also increased risk aversion across industrial metals markets. The Democratic Party’s control of Congress has reduced expectations of aggressive US copper tariffs, potentially easing the price premium on American copper and encouraging metal flows back into global markets. Concerns about slowing AI-related investment and tighter financial conditions are adding further pressure. However, physical copper markets continue to show supply tightness, with domestic Chinese copper premiums rising above 2,500 yuan per ton, their highest level since records began in 2015.

Copper slumped to its lowest since July as a political shakeup in Washington threatened to blunt two key bullish drivers: the rapid buildout of AI infrastructure, and the risk of US import tariffs on the metal

Copper itself is not magnetic. However, the magnetic field causes electrons on the surface of the copper to rearrange themselves and begin rotating. This is the interaction of a magnet and copper. [📹styro.drake]

Copper and tin fell with other industrial metals, as a renewed selloff in technology stocks in Asia weakened the demand outlook for materials used in data centers and to solder circuit boards