Copper Falls as Traders Assess AI Trade, US-Iran Diplomacy Hopes

(Bloomberg) -- Copper slumped to a seven-week low as traders assessed the artificial-intelligence trade and the prospects of diplomacy in the Middle East conflict. 

The red metal slipped 2.2% on the London Metal Exchange to settle at $14,036 a metric ton on Tuesday, the lowest since Sept. 14. Comex copper fell 2.5% to settle at $6.4020 a pound. A drop in oil on unconfirmed reports of peace talks progress in the US-Iran conflict pushed bond yields and the dollar higher, weighing on metals priced in the US currency, like copper. 

Jitters about the rollout of artificial intelligence spending have pummeled equities over recent weeks, fueling fears about global growth and demand for metals. South Korea’s tech-heavy stock market came under pressure Tuesday while a rebound in a closely watched gauge of chipmakers sent US equities higher. 

The recent selloff has “put the AI demand narrative behind copper’s rally under renewed scrutiny,” RBC Capital Markets analysts wrote in a note. 

Copper is still up about 13% this year, but Tuesday’s decline threatens to knock prices out of a range that they’ve broadly held over the past two months. The 2026 rally was largely driven by expectations the US would impose import tariffs on refined metals, with uncertainty over Washington’s plans now weighing on prices. 

Metals broadly can benefit from the demand related to spending on AI-linked infrastructure, but copper has stood out as a potential major winner. Tin, used in soldering electric circuitry, also fell 4.5% to the lowest since April.

All other base metals on the LME declined. 

--With assistance from Mark Burton, Yvonne Yue Li and Jason Rogers.

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