Copper Declines for Third Straight Session

Copper futures slipped below $6.2 per pound on Monday, marking a third straight session of losses as growing evidence that the Middle East-driven energy price shock is fueling broader inflationary pressures reinforced expectations for tighter central bank policy. In the latest developments, President Donald Trump warned that Tehran is running out of time to reach an agreement with Washington, while Iranian media reports suggested negotiations remain at an impasse. Higher interest rates are seen weighing on the outlook for global economic growth and manufacturing activity, putting additional pressure on industrial metals demand. Sentiment was also dampened by signs of weakness in China’s economy, with retail sales and industrial production both missing expectations, while fixed asset investment unexpectedly contracted, raising concerns about demand prospects in the world’s largest copper consumer.

Copper decreased 5% to 6.2389 USD/Lbs

Copper futures dropped to near $6.3 per pound on Friday, marking a second straight session of losses as elevated prices discouraged buying activity in China. The metal also faced pressure from accelerating US inflation, which reinforced expectations for a Federal Reserve interest rate hike later this year. Despite the recent decline, analysts continue to view Chinese copper demand as broadly resilient this year, with consumption from clean energy and technology-related industries helping offset weakness in the property and construction sectors. Copper also remains supported by a constructive long-term outlook driven by artificial intelligence-related infrastructure expansion, power grid modernization, and the broader global energy transition. On the supply side, China’s export restrictions on sulfuric acid, combined with disruptions to sulfur production in the Middle East, could tighten global supply conditions and provide additional structural support for prices.