Copper Rises to Over 2-Month High

Copper futures in the US rose to above $6.1 per pound, the highest in over two months and tracking the increase in most industrial metals as signals of restored trade through the Strait of Hormuz improved the outlook of manufacturing activity and pressured the dollar. Iranian authorities stated that commercial vessels crossing the Strait of Hormuz will no longer be targeted, backing hopes of restored fuel supply from the region and improving operation costs for major manufacturers, which supports demand for industrial metals. In the meantime, the softer pivot to safety drove the US dollar to depreciate, supporting bidding for foreign consumers. Physical demand had already been supported by China as firms enter their restocking season. Longer-term demand was also supported by growing investment in electrification investments in grids, datacenters, and electric cars.

Copper futures held above $6 per pound on Friday and were on track for a fourth consecutive weekly gain, supported by renewed buying interest from Chinese consumers as fabricators took advantage of softer prices. Expectations around an upcoming US tariff decision also lent support, prompting some cargoes to be redirected toward the US market. Beyond near-term trade dynamics, copper continues to benefit from structural demand tied to global electrification, artificial intelligence adoption, and steady consumption from power grids and construction activity. On the supply side, output remains constrained by mining disruptions, chronic underinvestment, and long project development timelines. Sentiment was further buoyed by growing optimism over an end to the US-Iran conflict, which eased inflation concerns and reduced expectations for tighter central bank policy, factors that have recently weighed on metals markets.

Copper futures rose to around $6.1 per pound on Thursday, extending gains for a fifth consecutive session to reach their highest level since late January, as easing concerns over the Middle East conflict supported expectations for steadier global growth and industrial demand. Reports indicated Washington and Tehran are considering extending their two-week ceasefire to allow additional time for negotiations, even as the Strait of Hormuz remains effectively closed under a dual blockade. Market attention has now shifted to a potential second round of US-Iran talks, expected to focus on reopening the strait and addressing Iran’s nuclear enrichment program. Copper prices also found support from firmer demand signals in China, where data showed March imports of copper ore and concentrate rose 6.6% year-on-year. Chinese fabricators were also reported to have increased purchases, taking advantage of recent price softness.