Copper and aluminium prices edged lower as renewed concerns over the sustainability of artificial intelligence (AI) infrastructure spending weighed on the demand outlook.
Copper fell 0.2 percent to about US$14,588 per tonne, while aluminium declined 0.3 percent and zinc dropped 0.7 percent, according to Access Bank Group’s market commentary.
Iron ore prices also weakened to US$90.70 per tonne, their lowest level in two years.
Read more: Copper extends gains on AI infrastructure demand
The declines came amid a sell-off in technology shares as investors grew concerned that financing the expansion of data centres was becoming increasingly challenging.
“The development has raised uncertainty over future demand for industrial metals, with AI-related investment increasingly influencing market sentiment and expectations for consumption,” the commentary stated.
However, copper’s 17 percent rally this year has also been supported by the threat of United States import tariffs, which has encouraged significant volumes of the metal to flow into the US, tightening supply elsewhere.
Despite the near-term weakness, the longer-term outlook for copper remains supported by electrification and continued investment in data-centre infrastructure.
Prices are, however, likely to remain sensitive to developments in the technology sector as investors reassess company valuations, the financing of new infrastructure and the sustainability of industrial demand.
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