Copper retreated on Tuesday, extending a pullback from last week’s record high as weak economic data from top consumer China and renewed concerns about an artificial intelligence bubble pressured prices.

The most-traded copper contract on the Shanghai Futures Exchange declined 1.29% to 91,380 yuan ($12,975.87) a metric ton as of 0315 GMT.

The benchmark three-month copper on the London Metal Exchange fell 0.91% to $11,550 a ton.

China’s factory output slowed to a 15-month low in November, while new home prices continued to decline, according to data released on Monday.

The red metal used in power, construction, and manufacturing declined due to disappointing data, despite a weaker dollar that supports commodities traded in the greenback by making them cheaper for investors using other currencies.

Renewed fear of the AI bubble bursting also weakened copper, triggering a sudden sell-off on Friday after the red metal hit an all-time high.

Elsewhere among SHFE base metals, nickel collapsed to a 40-month low of 111,770 yuan a ton. It was down 2.68$ to 111,920 a ton as of 0315 GMT.

The Shanghai nickel tracked the London benchmark, which plunged as low as $14,235 a ton on Monday, the lowest since April.

The three-month nickel on the LME continued to decline, down 0.49% to $13,275 a ton on Tuesday.

Russia’s mining heavyweight Nornickel on Monday raised its expectations for the nickel surplus.

Their expectation for the 2025 surplus is 240,000 tons, up from 120,000 tons in their July outlook, and the 2026 surplus is expected to be 275,000 tons, also a significant rise from 130,000 tons in July.

Nickel, a metal used in stainless steel and batteries, has been in a significant supply glut since 2023 following a boom in output from Indonesia.

The recent weakness was driven by weak demand for the metal ahead of year-end, traders said.

Both nickel pig iron (NPI) (SMM-NIC-NPI15) and nickel sulfate (SMM-NIC-SOIBG) have been on the decline since mid-October. NPI was used as a key feedstock for stainless steel, and nickel sulfate is a raw material for batteries.

Shanghai nickel has lost more than 11% so far this year, and London copper has declined by nearly 7%.

On the Shanghai market, tin posted the biggest decline, down 3.92% to 318,070 yuan a ton. Aluminium dropped 0.96%, zinc lost 1.69% and lead shed 1.38%.

Among other LME metals, tin lost 1.60%, aluminium dipped 0.38%, zinc dropped 0.47% and lead posted sole gain at 0.15%.
Source: Reuters