Copper hits six-week high on hopes of fresh US-Iran peace talks
- Benchmark copper on the London Metal Exchange touched $13,392.5 a metric ton
LONDON: Copper price hit six-week highs on Wednesday as the prospect of another round of talks between the United States and Iran to end the war boosted sentiment.
Benchmark copper on the London Metal Exchange touched $13,392.5 a metric ton, the highest since March 2. It was down 0.2% to $13,254 at 0956 GMT on profit-taking triggered by the firmer dollar which when it rises makes dollar-priced metals more expensive for holders of other currencies.
However, traders said sentiment and volumes overall in industrial metals markets was buoyant.
U.S. President Donald Trump said on Tuesday talks to end the Iran war could resume in Pakistan over the next two days after the collapse of weekend negotiations prompted Washington to impose a blockade on Iranian ports.
“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,” Britannia Global Markets said in a note.
Expectations of stronger demand in top consumer China are highlighted by the Yangshan copper premium, a gauge of China’s appetite for importing copper. At $74 a ton, it has gained 270% since the end of January and is at its highest since June last year.
Industrial production and investment data due later this week will help traders gauge Chinese demand for industrial metals.
Copper and nickel are supported by worries about shortages of sulphur used to process both metals, due to disrupted supplies from the Middle East.
The Middle East accounts for 24% of global sulphur production, where it is a byproduct of oil and gas refining. Its aluminium production last year amounted to nearly seven million tons or 9% of global supplies.
Prices of aluminium are trading at four-year highs.
Aluminium was 0.2% firmer at $3,571 a ton, zinc rose 1.1% to $3,378, lead added 0.6% to $1,947, tin slipped 0.4% to $50,155 and nickel advanced 0.4%
to $18,285.
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