Copper ticks higher on Chile supply worries and hopes for Iran war deal

LONDON: Copper prices edged higher on Wednesday on hopes that the Iran war was nearing an end and after top producer Chile cut its production outlook.

Benchmark three-month copper on the London Metal Exchange was up 0.4% to $13,470 a metric ton by 0935 GMT after touching its weakest since May 8 at $13,350.

LME copper has slipped from its highest in more than three months at $14,196.50 a week ago, driven down by profit-taking, a strong dollar and worries over demand in top metals consumer China.

“The small gains we’re seeing today are primarily a reaction to the wider market, where we’re seeing some risk-on coming back in, led by softer oil prices and softer bond yields,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

Oil prices lost about 1% on Wednesday after two Chinese oil tankers left the Strait of Hormuz and President Donald Trump said the Iran war will end “very quickly”.

Copper was also supported by news that Chile, the world’s biggest producer of the metal, cut its production forecast, saying it would fall 2% this year. In February, Chile said that output would grow by 3.7% in 2026.

LME nickel lost 0.3% to $18,745 a ton as investors sought clarity on plans by top producer Indonesia to bring exports of key commodities under centralised state control. Indonesian President Prabowo Subianto said his government would issue a regulation to strengthen control over commodity exports.

Nickel had gained in London on Tuesday, lifted by supply concerns that carried over into Chinese trading on Wednesday. The most-traded nickel contract on the Shanghai Futures Exchange rose 1.9% to close at 145,390 yuan ($21,368.31) a ton.

Among other metals, LME aluminium dipped 0.3% to $3,593 a ton, zinc added 0.5% to $3,530.50, lead was little changed at $1,963 and tin climbed 3.4% to $53,375.