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Copper prices firmed on Thursday, buoyed by renewed appetite for riskier assets after upbeat earnings from Nvidia reassured investors about the durability of the artificial intelligence boom that has driven much of the equity market rally this year.
Benchmark three-month copper on the London Metal Exchange (LME) rose 0.2 per cent to $9,778 a metric tonne, recouping some ground after slipping 0.8 per cent in the previous session. The red metal has advanced around 11 per cent so far in 2025, though it has struggled to decisively breach the psychologically important $10,000 a tonne level after failing to do so in early July.
“Metals in general are in a holding pattern right now, but the main driver today is probably stronger risk appetite following the Nvidia results last night. It just highlights the importance that this whole AI craze currently has on the market and also wider investment appetite,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
Nvidia, whose processors underpin much of the AI infrastructure build-out, delivered stronger-than-expected quarterly results on Wednesday, easing concerns over a slowdown in demand for high-end chips. The announcement lifted U.S. technology stocks and rippled through global markets, with European equities and Chinese shares also climbing. Investors interpreted the earnings as evidence that AI-driven investment remains resilient despite broader economic headwinds.
Copper, which is heavily used in electronics, renewable energy and construction, often trades in line with shifts in investor sentiment about global growth. Analysts said that while optimism around AI-related demand was lending short-term support, the market remained weighed down by signs of oversupply.
Inventories are rising sharply, particularly in the United States. Data released on Thursday showed LME copper inventories increasing by 1,850 tonnes to 157,950 tonnes, the highest level in three months. On the U.S. Comex exchange, stockpiles have nearly tripled this year as large amounts of copper were shipped into the country ahead of the imposition of 50 per cent tariffs last month.
“There’s a big overhang of supply sitting in the U.S., so I suppose it really depends on whether demand outside the U.S. is strong enough for that to start to shift,” Hansen added.
In China, the most-traded copper contract on the Shanghai Futures Exchange slipped 0.5 per cent to 78,930 yuan a tonne, reflecting a more subdued demand outlook in the world’s largest consumer of the metal.
Other industrial metals were mixed. LME aluminium gained 0.1 per cent to $2,606 a tonne, lead added 0.2 per cent to $1,987.50 and tin rose 0.3 per cent to $34,660. Zinc edged down 0.1 per cent to $2,758, while nickel was little changed at $15,135.
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