SINGAPORE: Copper prices on the Shanghai Futures Exchange and London Metal Exchange were largely flat on Thursday, as the market focused on developments in the Israel-Iran conflict while tight supply provided price support.
The LME’s three-month copper was nearly flat, up $2 to $9,657.50 per metric ton by 0107 GMT, while SHFE’s most-traded copper contract was also little changed, down 30 yuan to 78,590 yuan ($10,930.31) a ton.
Investors closely watched tensions in the Middle East tensions as US President Donald Trump kept the world guessing about whether Washington would join Israel’s bombardment of Iranian nuclear sites as the conflict entered its seventh day.
In the longer term, “any sustained spike in energy prices is likely to ultimately weigh on the copper market due to the higher cost to producers,” ANZ said.
Copper supply was tight, with stocks in LME-registered warehouses at 107,350 tons dropping 60% since March, and are at their lowest since May 2024.
On Wednesday, the US central bank held interest rates steady, signalling that borrowing costs are still likely to fall in 2025, and the US dollar index traded higher against most major currencies.
A higher dollar usually makes greenback-priced commodities more expensive, capping gains on the prices of metals.
Copper steady ahead of Fed decision, focus on Middle East
LME aluminium was flat at $2,546, while tin firmed by 0.3% to $32,465, zinc gained 0.1% at $2,640, lead inched 0.1% higher to $1,995.5, and nickel rose 0.1% to $15,065.
SHFE nickel gained 0.6% to 119,030 yuan a ton, tin rose 0.3% to 264,240 yuan, aluminium advanced 0.2% to 20,680 yuan, lead gained 0.2% to 16,870 yuan, while zinc eased 0.1% to 21,980 yuan.
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