Copper Gains on Risk-On Mood

Copper futures rose to around $6.6 per pound on Tuesday, advancing for a third consecutive session amid a rally in risk assets, highlighted by gains in technology and artificial intelligence stocks. Demand for copper is benefiting from the rapid expansion of data centers and power infrastructure required to support AI development. Still, the near-term demand outlook remains constrained by signs of weakening industrial activity in China, the world’s largest consumer of the metal. On the supply side, Chilean copper output dropped in August to its lowest level since February 2011, while workers at Antofagasta’s Centinela mine voted in favor of strike action after wage negotiations failed to reach an agreement. Meanwhile, the Trump administration has yet to decide on potential tariffs targeting refined copper. Earlier threats of US duties on refined metals encouraged traders to divert shipments toward American warehouses, contributing to the recent surge in copper prices.