Copper Drops for a Fourth Straight Session

Copper futures in the US hovered around $5.91 per pound, marking a fourth consecutive decline after reaching a record high of $6.12 on April 22, as stalled negotiations between Iran and the United States weighed on expectations for global manufacturing activity.

The exchange of increasingly hawkish statements from both sides also strengthened the US dollar during the period, reducing the purchasing power of overseas buyers of industrial metals.

Despite the pullback, prices remained relatively close to historic highs, as the ongoing conflict simultaneously disrupted short-term copper supply conditions.

Supply risks were particularly evident in Chile, the world’s leading producer, where production faced pressure after the Middle East conflict interrupted sulphur shipments to China. In response, China curtailed exports of sulphuric acid—an input critical to nearly half of Chile’s copper refining capacity.

At the same time, demand fundamentals continued to show strength. Major technology companies have been signing large-scale agreements that are accelerating datacenter construction across key manufacturing hubs, reinforcing the long-term demand outlook for copper due to its essential role in electrification and power grid infrastructure.

Source: ​tradingeconomics