Copper Heads for Third Weekly Drop

Copper futures in the US were near $5.95 per pound, dropping for a fourth session since testing record highs at $6.12 on April 22nd as the lack progress between Iran and the US in their conflict pressed the outlook on global manufacturing. The exchange of hawkish remarks between both delegations also supported the dollar in the period, pressing the purchasing power for foreign buyers of industrial metals. Still, prices remained relatively close to historical peaks as the conflict also dented supply for copper in the near term. Top producer Chile had its supply under threat as the war in the Middle East halted supplies of sulphur to China, driving China to halt the exports of sulphuric acid that are essential half of Chile's copper refining. On top of that, major tech companies continued to sign agreements that exponentially increase datacenter construction across major manufacturing centers, supporting the outlook for copper due to its utility in electrification and grid technology.

Copper futures hovered around $6 per pound on Tuesday, trading largely sideways as stalled US–Iran peace efforts and ongoing disruption in the Strait of Hormuz kept energy prices elevated and inflation risks in focus. Iran reportedly sent a new proposal to the US through Pakistani mediators, offering to reopen the Strait of Hormuz if Washington lifts its blockade, though Tehran’s nuclear program remains a key sticking point in negotiations. Industrial metals, including copper, have faced headwinds from rising inflation concerns that could prompt tighter monetary policy, alongside mounting growth risks that may dampen global demand. Still, downside pressure has been partly offset by restocking activity in China ahead of the May 1–5 Labor Day holiday. Official data also showed Chinese smelters produced a record 1.33 million tons of refined copper in March.

Copper futures fell to below $6 per pound on Friday after reaching near two-month highs earlier in the week, as stalled US-Iran peace efforts and continued disruption in the Strait of Hormuz kept energy prices elevated and inflation risks in focus. Tehran continues to maintain control of the strategic waterway and has reportedly fired on commercial vessels this week, while the US blockade of Iranian ports remains in place, sustaining pressure on the Islamic Republic. Copper and other industrial metals have faced headwinds from inflation concerns that could prompt tighter monetary policy, alongside growth risks that may soften global industrial demand. Still, downside pressure has been partially cushioned by restocking activity in China ahead of the Labor Day holiday from May 1 to 5. Official data also showed Chinese smelters produced a record 1.33 million tons of refined copper in March.