Key Moments
- Copper climbed 0.7% to $12,227.50 a ton on the LME, putting it on track for a 2.5% weekly gain.
- Aluminum supply disruptions linked to the Iran war led Japanese buyers to accept the highest premium in 11 years.
- Iron ore fell 0.6% to $105.75 a ton in Singapore and was set for its first weekly decline in five.
Market Sentiment Tied to Middle East Developments
Copper prices advanced on Friday and were on course for their first weekly increase this month, supported by optimism that diplomatic efforts to resolve the war in the Middle East could succeed and help avert a drag on global economic growth.
President Donald Trump extended a deadline for Iran to reach a deal or face additional attacks. Uncertainty persisted over the counterparties to Washington’s talks, while the Wall Street Journal reported that the US was weighing the deployment of up to 10,000 more troops to the Middle East.
Most industrial metals have retreated this month as investors anticipated that the conflict could drive inflation higher and weigh on global growth. Aluminum has been a notable outlier, benefiting from the effective closure of the Strait of Hormuz, which has removed about 9% of global supply from the market.
Traders Remain Cautious Amid Ongoing Tensions
“Despite all the claims from the US side, there is hardly any easing of tensions in reality,” said Harry Jiang, a trader with China-Base Ningbo Group Co. “Many traders are taking a wait-and-see approach.”
For aluminum, Japanese buyers agreed to pay the highest premium in 11 years after the Iran war disrupted supplies, a development that is likely to add inflationary pressure for manufacturers that rely on the metal as an input.
China Demand and Inventory Dynamics Support Copper
Investors were also tracking signs of a rebound in Chinese copper demand. The drop in prices has encouraged increased buying from fabricators, and inventories posted their largest decline of the year at the beginning of the week.
Price Moves Across Key Industrial Metals
| Metal | Location/Exchange | Price | Daily Move | Weekly Performance |
|---|---|---|---|---|
| Copper | London Metal Exchange | $12,227.50 a ton | +0.7% | +2.5% |
| Aluminum | London Metal Exchange | Not specified | Flat | +1.7% |
| Iron ore | Singapore | $105.75 a ton | -0.6% | First weekly decline in five |
As of 7:35 a.m., copper on the London Metal Exchange rose 0.7% to $12,227.50 a ton, positioning it for a 2.5% gain for the week. Aluminum was unchanged on the day but headed toward a 1.7% weekly advance. Iron ore in Singapore fell 0.6% to $105.75 a ton and was set for its first weekly loss in five weeks.
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