Copper Extends Pullback Along with Base Metals

2026-03-03 10:10 By Andre Joaquim 1 min. read

Copper futures in the US fell to below $5.75 per pound on Tuesday, tracking pressure for base metals after a one-month high of $6 on February 27th as the war in Iran triggered a surge for the US dollar and developed risks to global manufacturing demand.

Iran and US allies continued to exchange strikes that followed from the weekend, with Iranian forces striking key energy infrastructure in the Middle East and threatening to attack any vessel or tanker crossing the Strait of Hormuz chokepoint.

The developments triggered surges in global energy prices, raising the dollar due to a likely hawkish response from the Federal Reserve in addition to a pivot towards safety.

The surging energy costs also risk a pullback in manufacturing that hurts base metal demand.

Still, prices remained relatively close to their record high of $6.2 touched in the end of January as bullish speculative demand coincides with tight supply.

Signals of incoming stimulus from the Chinese government also aided demand.



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Copper Extends Pullback Along with Base Metals
Copper futures in the US fell to below $5.75 per pound on Tuesday, tracking pressure for base metals after a one-month high of $6 on February 27th as the war in Iran triggered a surge for the US dollar and developed risks to global manufacturing demand. Iran and US allies continued to exchange strikes that followed from the weekend, with Iranian forces striking key energy infrastructure in the Middle East and threatening to attack any vessel or tanker crossing the Strait of Hormuz chokepoint. The developments triggered surges in global energy prices, raising the dollar due to a likely hawkish response from the Federal Reserve in addition to a pivot towards safety. The surging energy costs also risk a pullback in manufacturing that hurts base metal demand. Still, prices remained relatively close to their record high of $6.2 touched in the end of January as bullish speculative demand coincides with tight supply. Signals of incoming stimulus from the Chinese government also aided demand.
2026-03-03
Copper Stabilizes on China Demand Hopes
Copper rose to around $5.95 per pound on Tuesday after coming under pressure in the prior session, as investors focused on the upcoming annual convention of the National People’s Congress in top consumer China for demand signals. The annual “Two Sessions,” scheduled from March 4 to around March 11, is expected to set economic targets, outline policy priorities, and release the 15th Five-Year Plan detailing objectives for 2026–2030. However, gains in copper may be capped by a rallying dollar, which strengthened as investors sought the reserve currency amid surging energy prices linked to the Middle East conflict. Markets have pushed back expectations for the next Federal Reserve rate cut to September from earlier forecasts of July, though two 25 basis point reductions remain priced in for 2026. Meanwhile, the US military is expected to intensify attacks on Iran, with President Donald Trump giving no indication that operations would end soon.
2026-03-03
Copper is down by 2.01%
Copper decreased 2.01% to 5.884 USD/Lbs
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