Copper Falls to 4-Month Low
Copper fell to $6.20 per pound in November, the lowest in four months, tracking base metals with exposure to data centers and electrification projects as markets reconsidered the magnitude of demand growth for the sector's infrastructure buildout. Prices erased their momentary rebound as hotter-than-expected inflation in the US drove markets to price in multiple Federal Reserve rate hikes in the coming quarters, lifting the dollar and borrowing costs for debt-ridden AI infrastructure companies. The data compounded recent pressure from the Democratic Party assuming a majority in the US Congress, which is associated with policies that may slow investment in infrastructure projects that require large amounts of copper. A Democratic Congress also reduced bids for copper futures in the US as tariffs on the metal threatened by President-elect Trump became less likely to be implemented.
Copper fell to $6.20 per pound in November, the lowest in four months, tracking base metals with exposure to data centers and electrification projects as markets reconsidered the magnitude of demand growth for the sector's infrastructure buildout. Prices erased their momentary rebound as hotter-than-expected inflation in the US drove markets to price in multiple Federal Reserve rate hikes in the coming quarters, lifting the dollar and borrowing costs for debt-ridden AI infrastructure companies.
The data compounded recent pressure from the Democratic Party assuming a majority in the US Congress, which is associated with policies that may slow investment in infrastructure projects that require large amounts of copper. A Democratic Congress also reduced bids for copper futures in the US as tariffs on the metal threatened by President-elect Trump became less likely to be implemented.