Copper falls as hopes for quick end to Iran war fade

Copper fell for the first time in five sessions on Thursday on renewed investor concerns over economic growth after U.S. President Donald Trump vowed more strikes on Iran and gave no specific timeline to end the Middle East conflict.

Benchmark three-month copper on the London Metal Exchange was down 1.6% at $12,235.50 per metric ton in official open outcry activity. The metal, considered a bellwether for the global economy, was set to end the Easter holiday-shortened week up 0.4% after its earlier run of four straight daily gains.

“Copper is currently trading more like a macro-sensitive risk asset, moving in line with equities, as sentiment weakens around the macro outlook and geopolitical uncertainty persists,” said Alexandre Claude, CEO of DBX Commodities.

Brimming inventories also continue to weigh. LME copper stocks of 364,450 tons are the highest in almost eight years. Meanwhile, major Chinese smelters are planning to raise or maintain output in 2026, despite a public commitment late last year to cut production by more than 10%.

Aluminium dipped 3% to $3,424 a ton despite concerns over smelter shutdowns in the Gulf following Iranian attacks last Saturday. Iran’s Revolutionary Guards said Tehran’s next response would be “more painful” if Iranian industries are hit again.

“Despite the escalation rhetoric, aluminium is trading lower because the market is still struggling to quantify how severe and how long these Gulf disruptions will be,” ING commodities strategist Ewa Manthey said.

“Current pricing reflects headline risk, not the full physical impact, particularly if shutdowns persist or widen.”

The cash LME aluminium contract was trading at a steep $67.25 a ton premium over the three-month forward, pointing to a shortage of near-term metal.

Zinc slipped 1.7% to $3,235, lead lost 1.3% to $1,916, nickel shed 0.9% to $17,050 and tin slumped 3.9% to $45,500.

“The pullback across LME metals … looks more like short‑term positioning and risk‑trimming ahead of the long weekend,” Manthey added.

The LME will be closed on Friday and on Monday for the Easter holiday.