Copper Falls From Highest Since February With Iran War in LimboAI Quick ReadCopper fell with other metals as investors watched for the next major developments from the Middle East after peace talks stalled, with the US and Iran both vying for control of the Strait of Hormuz.
A key gauge of prices for London-traded metals hit a record high on Wednesday after US President Donald Trump said a ceasefire with Iran will remain in place indefinitely, while Washington waits for Iran to submit a peace proposal. Tehran says it has no plans to take part in negotiations imminently.
The US is maintaining a naval blockade on vessels transiting to and from Iran’s ports to apply pressure on the Islamic Republic, while Tehran is obstructing most other international traffic through Hormuz. The continued disruption to shipping is keeping energy prices high and threatening global growth.
Copper was 1.5% lower at $13,225.50 a ton as of 11:23 a.m. Shanghai time, after surging 1.5% on Wednesday to the highest close since early February. Aluminum and zinc also dipped after spiking in the previous session.
The LMEX Index — which is largely steered by copper, aluminum and zinc prices — climbed 1.5% to an all-time high on Wednesday. Metals have made a strong showing in recent weeks after the US and Iran agreed to a ceasefire and fears over continued escalation across the Middle East abated.
A stronger copper market in China has also helped push prices higher as buyers appear more comfortable with prices above $13,000 a ton. But the international situation still makes those gains fragile, according to Yan Weijun, head of nonferrous metals research at Xiamen C&D Co.
“Domestic demand in China has been relatively strong, and inventory levels have rapidly declined, providing a solid bottom for copper,” Yan said. “But with significant uncertainty at the macro level, prices still lack a clear trend.”
This article was generated from an automated news agency feed without modifications to text.