Copper hovers at six-week peak on hopes of fresh US-Iran talks

Copper prices extended gains on Wednesday to hover near a six-week high, as the prospect of renewed US-Iran peace talks spurred hopes of a de-escalation in the Middle East conflict.

The most-traded copper contract on the Shanghai Futures Exchange rose 2.16% to 102,880 yuan ($15,090.35) per metric ton, as of 0222 GMT.

The contract touched its strongest level since March 3 at 103,130 yuan earlier in the session.

Benchmark three-month copper on the London Metal Exchange was up 0.56% at $13,358.5 per ton after hitting its highest since March 2 at $13,392.5 earlier.

Talks to end the Iran war could resume in Pakistan over the next two days, US President Donald Trump said on Tuesday, after the collapse of weekend negotiations prompted Washington to impose a blockade on Iranian ports.

Oil prices slid, easing concerns over inflation and a global economic recession that could dent demand for industrial metals.

Also, underpinning prices of the red metal used in power, construction and manufacturing was the prospect of improving demand. Refined copper consumption in China could grow by an average of 3.7% annually over the next decade, a researcher from state-owned China Minmetals Corp said on Tuesday.

Moreover, China’s plan to halt exports of sulphuric acid stoked fears over a potential hit to copper and nickel that uses the acid.

Nickel prices also advanced, as a shortage of sulphur due to disruptions triggered by the Iran war forced several Indonesian nickel processors to trim output by at least 10% since last month. Shanghai nickel jumped 2.57% while London price firmed 0.38%.

SHFE lead added 0.45%, tin climbed 3.94%, and zinc advanced 0.49%, while aluminium shed 0.12% on easing supply concern.

Among other LME metals, aluminium gained 0.72%, lead added 0.28%, tin ticked up 0.27%, and zinc rose 0.28%.