Key Moments
- LME three-month copper slipped 0.64% to $13,398.5 per metric ton amid renewed US-Iran hostilities.
- Brent crude advanced 2.79% to $78.13 per barrel, reigniting worries over energy-driven inflation and sustained high interest rates.
- Base metals broadly weakened, with aluminium, zinc, lead, nickel, and tin all registering declines across key exchanges.
Global Copper Benchmarks Move Lower
Copper prices traded lower on Monday as an escalation in the US-Iran conflict in the Middle East weighed on sentiment and Tehran again shut the critical Strait of Hormuz energy corridor.
On the London Metal Exchange (LME), the benchmark three-month copper contract declined 0.64% to $13,398.5 per metric ton. The most-active copper contract on the Shanghai Futures Exchange (SHFE) fell 0.68% to 103,100 yuan ($15,199.54) per ton.
In India, copper futures on the Multi Commodity Exchange (MCX) diverged slightly from the global trend. July copper futures were last up 0.06% at ₹1,294.35 per kg, though prices dropped as much as 0.75% during the session to an intraday low of ₹1,283.80.
Key Copper Price Levels
| Exchange | Contract | Price | Move |
|---|---|---|---|
| LME | Three-month copper | $13,398.5/metric ton | -0.64% |
| SHFE | Most-traded copper | 103,100 yuan ($15,199.54)/ton | -0.68% |
| MCX | July copper futures | ₹1,294.35/kg (intraday low ₹1,283.80) | +0.06% (low -0.75%) |
Geopolitics, Oil, and Inflation Fears Pressure Metals
The pullback in copper occurred within a broader sell-off across global commodity markets after the US-Iran war in West Asia intensified. The two countries exchanged substantial missile and drone strikes over the weekend, reinforcing risk-off positioning among investors.
Rising geopolitical stress pushed energy prices higher, with Brent crude gaining 2.79% to $78.13 per barrel. The jump in crude has rekindled concerns that persistently elevated energy costs could stoke inflation and lead central banks to maintain higher interest rates for an extended period.
A prolonged period of elevated interest rates generally restrains economic activity and industrial output, dampening demand for base metals such as copper.
Stronger Dollar and Cross-Commodity Moves
Gold and silver prices also came under pressure as the US dollar firmed modestly over the weekend. A stronger greenback increases the cost of dollar-priced commodities for buyers using other currencies, which can curb demand and weigh on prices, including for copper.
The weakness extended across the base metals complex. On the LME, aluminium prices fell 0.33%, while on the SHFE, aluminium dropped 0.65%. Other metals also declined, with zinc down 0.88%, lead lower by 0.98%, nickel shedding 1.29%, and tin dipping 0.23%.
Base Metals Performance Snapshot
| Metal | Exchange / Market | Move |
|---|---|---|
| Aluminium | LME | -0.33% |
| Aluminium | SHFE | -0.65% |
| Zinc | Global | -0.88% |
| Lead | Global | -0.98% |
| Nickel | Global | -1.29% |
| Tin | Global | -0.23% |
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