Shanghai copper prices hit a two-week high on Thursday, aided by a weaker U.S. dollar, which fell to its lowest level in over three years, and relief from the Israel-Iran ceasefire deal.
The most-traded copper contract on the Shanghai Futures Exchange was up 0.6% at 79,000 yuan ($11,032.75) per metric ton, its highest since June 11, as of 0132 GMT.
Three-month copper on the London Metal Exchange also added 0.7% to $9,777 a ton.
The dollar fell 0.4% to its lowest since March 2022 as concerns after a Wall Street Journal report said President Donald Trump has considered selecting and announcing Federal Reserve Chair Jerome Powell’s replacement by September or October, raising concerns about the soundness of U.S. monetary policy.
A weaker dollar makes greenback-denominated assets more affordable to holders of other currencies.
Copper edges higher on softer dollar, tentative Middle East truce
On the geopolitical front, the “ceasefire between Iran and Israel has a positive feedback on copper prices,” said Kelvin Wong, senior market analyst, Asia Pacific, at OANDA.
Trump said on Wednesday he would likely seek a commitment from Iran to end its nuclear ambitions at talks next week and credited U.S. strikes on Iran with bringing a swift end to the war between Israel and Tehran.
Meanwhile, Goldman Sachs expects copper prices to rise in the second half of 2025 to an average of $9,890 per metric ton, the bank said in a note, citing fears of a global supply squeeze driven by U.S. tariffs and increased activity in China.
LME aluminium rose 0.3% to $2,570 a ton, lead gained 0.6% at $2,044.5, nickel firmed 0.9% to $15,215 a ton, zinc was up 0.8% at $2,725, while tin eased 0.4% to $33,050.
SHFE aluminium rose 0.4% to 20,380 yuan a ton, zinc gained 0.9% to 22,165 yuan, lead retreated 0.8% to 16,675 yuan, tin fell 1% to 256,930 yuan and nickel gained 0.4% to 124,110 yuan.
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