Copper price falls over 1% to $13,655 due to Federal Reserve tightening expectations, with data center demand limiting the decline

⑴ As Federal Reserve policymakers adopt a more hawkish stance, dampening market sentiment, copper prices have led the decline among base metals. According to analysts at ANZ Research, higher interest rates increase the costs for copper importers, putting additional pressure on prices. During early European trading, London copper futures fell 1.15% to $13,655 per ton.⑵ However, analysts noted that robust demand has limited the extent of the price drop. The construction of data center infrastructure—which is crucial to the development of artificial intelligence—is boosting copper consumption. With factors on both the supply and demand side intertwined, copper prices in the short term remain suppressed by macro policy expectations, though the fundamentals may provide some support, making the downward space relatively limited.