Copper is down by 2.01%

Copper futures fell toward the $6 per pound mark on Wednesday, the lowest in two weeks, and tracking the pullback in base metals after the escalation in the Middle East war strengthened the dollar and hampered the outlook on global manufacturing. The US and Iran exchanged attacks, prompting Washington to block Iranian energy sales and President Trump to label the current ceasefire as invalid. Energy costs rose and lifted credit costs across the globe, hampering the outlook for manufacturing activity. The developments offset supply concerns for copper as the Middle East due to the shortage of sulphuric acid since the start of the conflict, essential in the copper refining process. This is partly because of higher exports from alternative sources, with Canadian export volumes of non-metallic minerals, which are led by sulphur, rising 50% on the month in May.

Copper decreased 2.01% to 6.0477 USD/Lbs

Copper futures held steady above $6.15 per pound on Wednesday, remaining range-bound after BHP Group received environmental approval for an expansion project at its Chilean copper operations, supporting its strategy to benefit from an increasingly tight global market. The world's largest miner aims to nearly double its global copper output by the mid-2030s, driven by expectations of a prolonged supply deficit amid resilient demand from electrification and other structural trends. Meanwhile, copper prices faced headwinds as oil prices climbed following fresh US air strikes on Iran in response to recent attacks on commercial vessels transiting the Strait of Hormuz. Investors also awaited the minutes of the Federal Reserve’s June meeting for further clues on the policy outlook after the central bank adopted a more hawkish tone at its June policy meeting.