Tin sinks 10% this quarter as AI stock selloff drags copper and aluminium lower
Tin has fallen 10% this quarter, the worst performer among the London Metal Exchange's six major metals, after a renewed selloff in Asian technology stocks weakened the demand outlook for materials used in data centres and to solder circuit boards.
On the LME, tin dropped 2.2% to US$48,550 a tonne by 10.50am in Shanghai, while copper fell 1.2% to US$14,180 a tonne and aluminium slipped 1.1% to US$3,060.50 a tonne. Copper had risen on Monday, helped in part by a pullback in oil prices that could ease inflation pressures.
The pressure comes from persistent concerns over spending and stretched valuations at artificial intelligence companies, which feed directly into demand for the metals that underpin data-centre construction and electronics manufacturing.
Macro conditions are weighing heavily on metals, said Xu Wanqiu, an analyst with Cofco Futures Co., particularly given the possibility that the conflict could resume after the US midterm elections. The US and Iran have signalled a willingness to pursue peace talks, easing anxiety over the war's impact on interest rates and global growth.
For metals traders, the question is whether AI capital spending holds up. Tin's slide suggests the market is already pricing in a slower build-out, even as copper's brief Monday gain showed how quickly oil-driven inflation relief can shift the mood.
