Copper Climbs Near 5-Month High

Copper futures in the US surged to $6.4 per pound on Monday, the highest on record, as concerns about supply and the speculative longer-term demand outlook drove bidding volumes to surge. The ongoing conflict between the US and Iran in the Middle East has all but suspended exports of sulphur and sulphuric acid from the key region since March. The tight supply for the commodity, which is used by refiners through heap leaching and purifying copper to produce anodes, drove China to suspend exports. Consequently, the shortage in top copper producer Chile forced major refiners to cut capacity and lower supply. Meanwhile, major tech companies continued to sign agreements that exponentially increase datacenter construction, supporting the outlook for copper due to its utility in electrification and grid technology. Broader manufacturing demand was also underpinned by robust manufacturing activity in China, with the broader manufacturing PMI rising to an over five-year high.

Copper futures climbed above $6.2 per pound, approaching the record highs reached at the end of January, as investors increasingly expect that investments in AI infrastructure, power grid modernization, and clean energy will drive sustained long-term demand for the metal. Also, easing energy prices helped reduce concerns over global growth and industrial metals demand. At the same time, the ongoing Middle East conflict has disrupted shipments of sulphuric acid, a critical input in copper refining. China has banned sulphuric acid exports from May through at least December. The measure is expected to remove around 3M tonnes from the global seaborne market, significantly affecting major importers such as Chile, Indonesia, and India. Copper production in Chile had already declined by around 6% in the first three months of 2026 compared with the same period in 2025, even before accounting for the impact of sulphuric acid supply disruptions.

Copper futures held above $6.1 per pound on Friday and were on track to post a weekly gain of more than 3%, supported by easing energy prices earlier in the week, which helped reduce pressure on global growth and industrial metals demand. However, sentiment remained fragile as the US and Iran exchanged fire in the Strait of Hormuz. The Trump administration is currently awaiting Iran’s response to a proposal aimed at reopening Hormuz and ending the nearly 10-week conflict, with reports suggesting Tehran is expected to reply via Pakistan within the next two days. The ongoing conflict has also disrupted shipments of sulphuric acid, a key input in copper refining, adding to supply-side risks. At the same time, continued large-scale agreements among major technology firms have accelerated data center construction, strengthening the longer-term demand outlook for copper given its critical role in electrification and power grid infrastructure.