LME copper eased Thursday after hitting a two‑week high as investors moved to
the sidelines amid doubts about AI-driven demand and elevated US inventories. JP
Morgan analyst Patrick Jones said market sentiment has become more cautious but
not outright bearish. Alphabet’s sharp after‑hours drop on Wednesday, after the
company reported significantly faster cash burn from AI infrastructure spending,
weighed on demand expectations. The rally this year has also been tied to
expectations of US tariffs that would divert copper flows to the US and tighten
supply elsewhere; COMEX registered stocks are up 60% YTD to 800,321 short tons
(≈726,039 t). Jones said a key downside risk is the US ultimately not imposing
tariffs, which would reduce US import demand and shift pricing power back to
Chinese buyers.
