Copper prices bounced back on Monday as supply worries in China outweighed lingering concern about artificial intelligence spending and the outlook for tariffs.

Three-month copper on the London Metal Exchange rose 0.81% to $13,880 a metric ton, Reuters reported, recovering from last week's rout. The rebound came as traders focused on tight physical supply in China, the world's largest consumer of the metal.

Supply concerns have persisted in China even as financial markets have been shaken by the sell-off in technology shares. Copper is used in wiring, motors and power grids, so shortages in the physical market can push prices higher even when equity investors are nervous.

China supply squeeze drives the move

Trading giant Trafigura is seeking large volumes of copper to boost its sales into Asia for delivery in November and December, according to market reports on Monday. Spot copper premiums in Shanghai have hit a record 2,615 yuan per tonne as the market grapples with a deepening supply squeeze in China.

Chile, the world's biggest copper producer, has sharply reduced its 2026 production forecast, while flows of copper into warehouses in the United States have created regional bottlenecks and fuelled supply concerns. In China, the premium paid for imported copper has risen to about $200 a tonne, while exchange-monitored stocks have fallen by more than 75% in six months.

At the same time, the market still faces headwinds. The implications of the US midterm elections for tariffs and for spending on AI infrastructure remained a drag on sentiment, Reuters noted, and that uncertainty limited the size of Monday's recovery.

Miners feel the lift

The copper rebound helped mining shares recover in Australia on Monday. The S&P/ASX 200 recovered from an early dip to gain 8.9 points, or 0.1%, to 9,029.7, with miners providing most of the upward momentum as gold and copper prices rebounded.

BHP rose 2.74% to $59.20 and Rio Tinto gained 1.55% to $152.26 as copper futures gained 1.44% to US$6.33 a pound in Australian trading. Uranium and gold miners also rose, while banks fell.

Last week's damage still visible

Monday's rise only partly repaired the damage from last week, when copper slid to a three-month low and mining shares fell sharply. Glencore closed last week 4.69% lower at 495.15p as copper slid and cobalt output fell, and the world's 50 biggest mining companies have shed value since February as metal prices swung.

Traders will now watch whether the physical shortage in China is enough to hold copper higher, or whether worries about tariffs and AI spending pull prices back down. A decision on US copper tariffs remains pending, and any move to water down the tariff threat could release large volumes of copper stored in American warehouses back onto world markets.

Sources: Reuters, via TradingView, 9 November 2026; Commonwealth Bank market report, 9 November 2026.