Copper hits six-week high on prospects for more US-Iran peace talks

LONDON: Copper prices scaled their highest in six weeks on Tuesday on optimism about the possibility of US-Iran peace talks restarting and due to a weaker dollar.

Benchmark three-month copper on the London Metal Exchange was up 0.7 percent at USD13,140 per metric ton in official open-outcry trading, having touched its highest level since March 3 at USD13,210.50. Negotiating teams from the US and Iran could return to Islamabad this week to resume talks to end the war, sources told Reuters.

“Optimism that the US and Iran could restart peace talks is helping reverse some of the pressure metals faced recently from fears of surging energy costs and weaker economic growth,” said Ewa Manthey, commodities strategist at ING. “That said, the market remains highly headline driven.

Any escalation in the conflict, renewed spikes in energy prices or signs of weaker demand could quickly undermine sentiment.” The most-traded copper contract on the Shanghai Futures Exchange ended daytime trade up 2.1percent at 101,190 yuan (USD14,844.43) per ton.

Also supporting prices was a softer dollar index, trading around its weakest since March 2, which makes commodities priced in the US currency cheaper for buyers using other currencies.

Copper, used in construction, power and manufacturing, also found support from concerns that soaring energy prices caused by the Middle East war would lift overall costs.

The war has already raised costs for Codelco, the world’s top copper miner, by 10 cents per pound, while Antofagasta flagged concerns over mounting fuel and input costs.

“Meanwhile mine supply constraints remain with Chile’s copper output underperforming in 2026 so far,” said analyst Sudakshina Unnikrishnan at Standard Chartered Bank. China’s copper smelters will likely press ahead with plans to cut output as Beijing’s ban on sulphuric acid exports tames a price rally in the byproduct.

LME nickel gained 1.4percent in official activity to USD17,945 a ton, its highest since February 27, after nickel processors in top supplier Indonesia trimmed output and the government revised the formula used to determine mineral reference prices.

LME aluminium fell 1.2percent to USD3,565 a ton, zinc rose 0.2percent to USD3,323.50, lead added 0.3percent to USD1,927 and tin was up 2.8percent at USD49,650.