Metals rebound: Copper hits three-week peak
Copper climbed to a three-week high following the announcement of a temporary ceasefire between the US and Iran and the reopening of the Strait of Hormuz, easing concerns over inflation and a potential global economic slowdown.
The industrial metal surged as much as 3.5% to $12,741 a ton on the London Metal Exchange as investors regained appetite for risk, News.Az reports, citing Bloomberg.
Aluminum, which is particularly sensitive to supply disruptions during Middle East tensions, traded in a narrow range.
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The two-week ceasefire was reached less than two hours before President Donald Trump’s deadline for potential strikes on Iranian power plants and bridges. Oil prices at one point were heading for their biggest single-day drop in six years, while stocks surged, and the temporary halt in fighting improved the demand outlook for metals.
From a supply perspective, the ability of ships to transit the Strait of Hormuz — the key maritime chokepoint connecting the Persian Gulf to global markets — is critical for aluminum.
The Middle East accounts for roughly 10% of the world’s aluminum output, and shipments have been affected by near-closure of the waterway and Iranian attacks on facilities operated by Aluminium Bahrain BSC and Emirates Global Aluminium PJSC.
On the LME, copper advanced 3.1% to $12,693 a ton at 9:46 a.m. in London, while aluminum fell 0.3% to $3,466 a ton. Other base metals also gained.
Meanwhile, Singapore iron ore futures declined 1.1% to $105.5 a ton.
By Nijat Babayev
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