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Copper prices moved in opposite directions today, December 18, 2025. The market is currently grappling with the outlook for US interest rates. Simultaneously, waning confidence in the artificial intelligence (AI) sector is weighing heavily on investor sentiment.
In Shanghai, the most-traded copper contract on the Shanghai Futures Exchange (SHFE) closed 0.23% higher. It reached 92,600 yuan ($13,151.73) per metric ton. Meanwhile, the benchmark three-month copper on the London Metal Exchange (LME) declined. It dipped 0.16% to $11,718.50 a ton.
The Trump Factor & US Interest Rates
Politics is driving the current market volatility. In a national address on Wednesday, US President Donald Trump discussed the future of the Federal Reserve. He stated that the next Fed Chairman must believe in lowering interest rates “by a lot”.
Trump intends to replace current Fed Chair Jerome Powell, whose term ends in May. He plans to announce his selection early next year. The current finalists for the position include:
- Kevin Hassett (White House economic adviser)
- Kevin Warsh (Federal Reserve Governor)
- Chris Waller (Federal Reserve Governor)
However, the market remains sceptical. Investors doubt these candidates will lower rates as aggressively as Trump desires. Consequently, the dollar edged higher. This strength makes greenback-priced commodities like copper more expensive for international investors.
AI Scepticism & Data Centre Spending
The tech sector is also contributing to the pressure. Copper is a critical metal for building data centres, which are the backbone of AI. However, scepticism regarding AI is deepening.
Reports indicate that Blue Owl Capital, a data centre partner for Oracle, is backing a $10 billion deal for a new facility. This massive investment comes amid growing concerns about rising debt and excessive spending. As confidence in the AI sector’s financial sustainability wavers, sentiment for copper suffers.
Despite these headwinds, the “red metal” found some support. Supply shortage prospects and a steady demand outlook limited the scale of today’s decline.
Performance of Other Metals Against Copper
The broader metals market showed mixed results across the exchanges. Tin was the standout performer, surging 2.88% on the SHFE and 0.37% on the LME.
On the SHFE:
- Nickel: Gained 1.07%
- Zinc: Gained 0.52%
- Aluminium: Gained 0.25%
- Lead: Gained 0.06%
On the LME:
- Nickel: Gained 1.10%
- Aluminium: Dropped 0.45%
- Zinc: Declined 0.36%
- Lead: Dipped 0.13%
