Copper prices rise on Fund Buying Despite Fading Iran Peace Hopes
Copper prices rose on Tuesday, as funds bet on more gains due to supply problems and bullish technical signals. They ignored a lot of 'worries' about the lack of progress in ending the Iran War.
The benchmark three-month copper price on the London Metal Exchange rose 0.4% to $13,992.50 per metric tonne by 0940 GMT. This was its highest level in over three months after a record closing on Monday.
On Tuesday, hopes for a 'peace agreement with Iran' faded after U.S. president Donald Trump declared that the ceasefire was "on life-support".
Alastair Munro is a senior base metals analyst at broker Marex. He said: "Metals paused and drifted in the face of that macro-weight."
He referred to funds which 'use computer-driven model.
Munro said that the optimism about an AI boom, which is expected to demand large quantities of copper for data centers, helped offset any concerns over a weaker demand due to an extended Middle East Conflict.
LME copper has risen above important technical levels during recent sessions, as it moves closer to the intra-day record of $14,527.50 that was set on January 29.
The Shanghai Futures Exchange's most active copper contract closed at $15,528.28 (105,510 yuan) per ton, a 2.1% increase.
The power crisis in Peru, third largest copper producer in the world, also supported?copper. State-run Petroperu was authorized to apply for $2 billion in state-backed loan to maintain operations.
Prices were also supported by the expectation that China's imports of?refined?copper could increase in the second quarter.
Other metals include aluminium, which fell?0.4%, to $3.566 per ton. Zinc?added 0.8%, to $3.507.50. Lead added 0.2%, to $1.991.50. Nickel dropped 1.4%, to $18,975. Tin lost 0.3%, to $55,525. $1 = 6.7947 Chinese Yuan Renminbi (Reporting and editing by Tasim Zaid)
(source: Reuters)
