Copper resumed losses after a brief bounce in the previous session, as global inflation and growth concerns triggered by the Middle East war weighed on the metals complex.
Fighting between the US-Israeli alliance and Iran raged unabated, even as President Donald Trump claimed talks are under way to end the conflict. The US is planning to deploy about 3,000 troops from the 82nd Airborne Division to the region, the Wall Street Journal reported Tuesday, as the White House weighs options to ease Iran’s choke-hold on the Strait of Hormuz.
Iran has started charging transit fees on some commercial vessels passing through the strait, another sign of Tehran’s control over the world’s most important maritime energy channel. War-driven disruptions to the region’s energy production and trade have pushed oil prices higher, threatening to hurt economic activity worldwide while fueling inflation that could force central banks to take a more hawkish stance on interest rates.
Copper has fallen nearly 10% on the London Metal Exchange this month, luring more purchases from China. Inventories in the top metal-consuming country declined sharply over the past week.
But downside in prices will be limited by copper’s importance in the global energy transition and higher demand from Chinese fabricators, said Fan Rui, an analyst with Guoyuan Futures Co.
Copper fell 0.5% to settle at $12,100.50 a ton on the LME. Other base metals were mixed, with nickel down 0.8% and aluminum closing 1.9% higher.
By – https://www.mining.com/web/copper-price-jumps-as-trump-postpones-strikes-on-iranian-energy-assets/