How The AI Stock Selloff Is Hurting Copper Price
Copper prices plunged to a three-month low this week as fears over the AI boom spread from technology stocks into commodities.
On Tuesday, copper fell 3.2% to $13,883 per ton on the London Metal Exchange. Prices recovered on Wednesday, climbing back above $14,100 following the US midterm elections.
The metal has now retreated from its September record of $14,875, raising questions about whether its historic rally is losing momentum.
Why Are Copper Prices Falling?
Two major developments are driving the selloff.
First, the recent AI stock market rout has shaken confidence in the spending boom behind new data centers.
Copper is essential for electrical infrastructure, making it a popular investment tied to AI expansion.
Marex analyst Ed Meir said copper appeared to be “catching up” with the recent semiconductor selloff.
Second, Democrats’ victory in both chambers of Congress has reduced expectations of US tariffs on refined copper.
Those tariff fears previously encouraged traders to stockpile copper in America, squeezing supplies elsewhere and pushing prices higher.
Saxo Bank’s Ole Hansen warned that reduced tariff expectations could hurt copper prices.
#Copper: The US election results have triggered a rollercoaster across financial markets, including copper. The AI and data centre rollout may now come under increased scrutiny, potentially dampening the demand outlook from this particular sector. Overall, however, I believe the…
— Ole S Hansen (@Ole_S_Hansen) November 4, 2026
How Is Copper Trading Right Now?
The surprising development is that physical copper demand remains relatively strong.
China’s Yangshan copper premium, a measure of demand for imported metal, remains near $200 per ton, its highest in more than a decade.
Meanwhile, Chinese warehouse inventories have fallen more than 75% in six months.
Investors are selling copper over economic uncertainty while physical buyers continue competing for limited supplies.
Where Could Copper Prices Go Next?
On the daily copper chart, prices remain in a descending channel after breaking their upward trendline.
The $6.31-per-pound area is critical support, near July’s low.
A daily close below it could open the door toward $6.11 and potentially $5.91.
A sustained rebound would bring resistance around $6.70 back into focus.
Despite the short-term weakness, J.P. Morgan forecasts copper averaging $14,800 per ton in the fourth quarter, supported by supply constraints.
The next test is whether China’s demand can outweigh weakening confidence in AI investment.