On October 13, 2026, copper and aluminum prices experienced a significant decline. Market participants are increasingly concerned about the sustainability of massive capital investments into artificial intelligence infrastructure and data centers.
Prior to this downturn, copper prices had reached record highs, exceeding $14,000 per metric ton, largely driven by demand for electrification and AI hardware. However, current market sentiment is shifting due to fears that high construction costs could create financial barriers for future projects.
The market instability extended beyond industrial metals, as South Korea’s equity benchmark dropped by as much as 7% during the same period. Throughout 2026, these stocks have closely tracked copper prices, reflecting a shared reliance on the growth of the AI sector.
This marks the second instance in approximately one month where AI-related concerns have pressured metal prices. In mid-September 2026, market expectations for data center investments were dampened after technology executives suggested a potential slowdown in AI development.
Investors are now facing heightened volatility as they evaluate whether current financing challenges will lead to the cancellation or delay of planned data center projects. This situation highlights a concentration risk, as a major portion of the bullish case for copper this year was tied to AI demand.
