Copper Erases Middle East War Losses as Traders Eye Peace Talks

Article content(Bloomberg) — Copper extended its advance, erasing losses brought on by a more than six-week war in the Middle East, as traders eyed the prospect of peace negotiations between the US and Iran.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe industrial metal rose as much as 0.8% in London on Wednesday to push past a closing price of $13,343.50 a ton on Feb. 27, the day before US and Israel began strikes on Iran.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentMost base metals have been whipsawed since the conflict erupted, with prices initially falling due to concerns over the impact of supply chain disruption and slowing economic growth. Risk appetite returned after a temporary ceasefire was agreed last week, and has been reinforced by reports Washington and Tehran are looking to arrange a second round of talks in the coming days, along with signs of Chinese demand.Article contentArticle content“Copper’s coming back. First the restocking in China, then the inflation concerns dissipated amid the peace talks,” said Fan Rui, an analyst with Guoyuan Futures Co. “The worst is over.”Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentChinese fabricators have stepped up purchases after domestic copper prices fell below 100,000 yuan a ton in recent weeks due to the war, leading to a significant drawdown in domestic inventories. Article contentDespite the near-term economic impact of the energy crisis, the sharp shock could also prove beneficial for the metal’s long-term growth as economies pivot toward electrification, Trafigura Group analyst Henry Van said at an industry conference in Santiago.Article content“All of the big trends that have been pushing copper higher are now going to be supercharged,” he said. “There is a bigger incentive than ever before to do more electrification and insulate energy consumption from geopolitical shocks.”Article contentCopper prices on New York’s Comex exchange rose to a premium of $283 a ton above those on the London Metal Exchange this week, the highest since December.Article contentUS President Donald Trump’s planned tariffs on copper imports into the country led to a surge in Comex prices last year and enabled traders to make huge profits shipping copper into Comex warehouses in the US. Investors still expected a decision on tariffs for refined copper by the end of June, when the Department of Commerce is set to deliver an update on US copper markets. Article contentCopper was flat at $13,286 a ton on the London Metal Exchange at 1:05 p.m. in Shanghai. Aluminum – which has been the exception among base metals, given supply concerns due to attacks on smelters in the Persian Gulf region – climbed 0.65% to $3,586 a ton.Article contentTrending Forcing people to pay a moral tax if they leave the country won't inspire them to stay Personal Finance Posthaste: Canadian dollar is being dumped from FX reserves at a record pace. What's going on? News Canada needs to invest $1.8 trillion over the next decade in six key sectors, says RBC News Bank of Canada likely to stay put for now, says Paul Beaudry Economy What is Anthropic's Mythos AI model and why does it have the financial world in a panic? Innovation Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Forcing people to pay a moral tax if they leave the country won't inspire them to stay Personal Finance Posthaste: Canadian dollar is being dumped from FX reserves at a record pace. What's going on? News Canada needs to invest $1.8 trillion over the next decade in six key sectors, says RBC News Bank of Canada likely to stay put for now, says Paul Beaudry Economy What is Anthropic's Mythos AI model and why does it have the financial world in a panic? Innovation