Copper slides below $14K as tech stock selloff clouds demand outlook

What happened

Copper futures fell below $14,000 per metric ton to 11-week lows on Tuesday, dropping as much as 3.2% to $13,883 per ton on the London Metal Exchange, the lowest since August 19, as a technology stock selloff hurt risk appetite and clouded the demand outlook.

Confirmed

Global impact / market context

Lower copper prices can reduce revenue and profit for miners such as Southern Copper, Freeport and Teck, which means less cash available for dividends and capital spending. The drop also tests the AI-driven demand story that helped drive copper's rally this year.

Analyst inference

Technology stock weakness tied to worries about AI spending is spilling into metals, while tight supply outside the U.S. offers some support. Morgan Stanley expects LME copper to average $14,800 per ton in Q4 and $14,400 in Q1 2027 amid mine supply challenges.

Analyst inference

What to watch

1. Watch whether copper stays below $14,000 per ton, which would break the trading range it has held for the past two months, signaling weaker investor confidence in metals demand. Confirmed
2. Morgan Stanley expects LME copper to average $14,800 per ton in Q4 and $14,400 in Q1 2027; track whether actual prices move toward those forecast levels. Proposed
3. Monitor inventory shifts, since about 80% of global visible copper inventories sit in the U.S., leaving other markets tight and potentially supporting prices if demand holds up. Analyst inference

Evidence

• seekingalpha.com