LONDON: Copper prices rebounded on Wednesday on hopes that the Iran war was nearing an end and after top producer Chile cut its production outlook, while nickel extended gains on concern about the Indonesian supply outlook.
Benchmark three-month copper on the London Metal Exchange was up 1.7percent at USD13,637 a metric ton by 1600 GMT after touching its weakest since May 8 at USD13,350.
LME copper has slipped from its highest in more than three months at USD14,196.50 a week ago, driven down by profit-taking, a strong dollar and worries over demand in top metals consumer China. US Comex copper futures climbed 1.9percent to USD6.32 a lb.
“The… 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 slid 4percent on Wednesday after two Chinese oil tankers left the Strait of Hormuz and President Donald Trump said the US-Iran talks were in their “final stages”.
The metals markets got a boost from a weaker dollar index , making commodities priced in the US currency cheaper for buyers using other currencies. Copper was also supported by news that Chile, the world’s biggest producer of the metal, cut its production forecast, saying it would fall 2percent this year.
In February, Chile said that output would grow by 3.7percent in 2026. LME nickel rose 0.6percent to USD18,920 a ton after top producer Indonesia announced plans to bring exports of key commodities under centralised state control.
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