(Bloomberg) -- Copper rose — clawing back some of Friday’s steep drop — as investors refocused on prospects for a tighter market in 2026.
The industrial metal climbed as much as 1.5% on the London Metal Exchange after plummeting 3% in the previous session as a selloff in shares linked to artificial intelligence stoked concern about demand for the metal used in electrical wiring and renewable energy equipment.
Copper has rallied more than 30% this year after a series of mine disruptions cut supply, and as traders ship huge volumes to the US ahead of potential import tariffs. A wave of investment in green energy and power infrastructure has also spurred optimism for longer-term demand.
“Demand continues to beat expectations, despite concerns over the global economy and the fall in China’s economic growth,” ANZ Group Holdings Ltd. analysts led by Brian Martin said in a note. “We are bullish on copper and expect the market to move further into deficit in 2026.”
Still, the tumble on Friday shows how the metal’s fortunes are now partly tied to the fate of the US technology boom, and are vulnerable to any ebbing of optimism on artificial intelligence and tech valuations.
Copper rose 1.2% to $11,656.50 a ton on the LME as of 1242 p.m. in Shanghai, after soaring to a record high near $12,000 a ton on Friday before reversing those gains due to the technology rout on Wall Street. Zinc jumped 1.1% on Monday and aluminum was up 0.4%.
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