Copper Wavers Near Two-Month High as US-Iran Tensions Escalate

A bundle of copper cathode sheets. Photographer: Rebecca Noble/Bloomberg Photo by Rebecca Noble /BloombergArticle content(Bloomberg) — Copper eased from its highest close since early February, as peace talks between Washington and Tehran were thrown into uncertainty after the US seized an Iranian ship in the Strait of Hormuz.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentComing off four weeks of gains, the red metal dropped as much as 1.1% in Asian trading before paring losses. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe US capture of an Iranian-flagged vessel capped a weekend of deepening uncertainty over the next stage of the conflict now in its eighth week. Oil prices spiked on Monday — reversing some of last week’s steep declines — and metals were mixed as fears for the global economy once again steered trade.Article contentArticle contentThe major risk for metals is a prolonged closure of the strait, which would magnify the energy shock already rippling through the world economy. That could force central bankers into a more hawkish stance, hitting global manufacturing and damaging demand for industrial commodities.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 contentHowever, prices are getting some support from optimism over demand in China, where inventories have declined rapidly in recent weeks. Stockpiles monitored by the Shanghai Futures Exchange have dropped by almost 200,000 tons since this year’s peak on March 13.Article content“We are currently in peak consumption season in China and demand has maintained a high growth rate,” said Jia Zheng, trading manager at Suzhou Chuangyuan Harmony-Win Capital Management Co. “China’s copper prices have begun to move away from the impact of the situation in the Middle East.”Article contentAluminum, which was down more than 5% at one point on Friday after US President Donald Trump struck an optimistic tone on ending the war, climbed slightly on Monday. The dynamic in the aluminum market has been different from other base metals because the conflict has forced smelter closures and production cuts across the Middle East, pushing up prices.Article contentCopper was 0.4% lower at $13,289 a ton as of 1:39 p.m. Singapore time, after notching its third-highest close on record on Friday. Aluminum gained 0.1% to $3,566.50 a ton, while other metals were mixed.Article contentTrending US Seizes Iranian Ship in Blockade, Casting Doubt on Peace Talks PMN Business Posthaste: Why Canadians might be doomed to suffer a 'new normal' for oil prices News Brace for gas price 'shock' in inflation numbers out Monday, say economists Economy A rise in mortgage rates may ‘pull the rug' out from under the spring housing market, says CREA Mortgages Bank of Canada's Macklem says he has spoken to Fed chair about risks from Anthropic's Mythos AI model Banking 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. US Seizes Iranian Ship in Blockade, Casting Doubt on Peace Talks PMN Business Posthaste: Why Canadians might be doomed to suffer a 'new normal' for oil prices News Brace for gas price 'shock' in inflation numbers out Monday, say economists Economy A rise in mortgage rates may ‘pull the rug' out from under the spring housing market, says CREA Mortgages Bank of Canada's Macklem says he has spoken to Fed chair about risks from Anthropic's Mythos AI model Banking