AI Regulation Concerns Trigger Sell-Off in Copper

Following the US midterm elections, concerns over regulation of artificial intelligence investments and restrictions on data centers spread from technology stocks to commodities. Copper, described as the infrastructure metal of the future, lost 5 percent in US futures compared with the start of November amid these developments. Copper prices also fell by more than $600 per ton in the London market. This brought a short-term brake to the copper story shaped by AI-driven demand expectations. The decline was prevented from being sharper by stock levels in China. The drop in inventories in the country to critical levels stood out as a factor limiting downward pressure on prices. Markets continue to monitor the potential effects of regulatory steps on AI investments on data center demand and therefore copper consumption. Not investment advice.