Copper slips from record highs on Middle East worries

LONDON: [Copper prices](https://Copper hits record high on weak supply outside US) edged lower from record highs on Wednesday as hostilities in the Middle East flared, raising concerns about global growth and metals demand.

Three-month copper on the London Metal Exchange slipped 0.5% to $14,641 a metric ton by 0945 GMT after touching an all-time high of $14,779 on Tuesday.

Oil prices rose above $100 a barrel to six-week highs after a sharp escalation of attacks by Iran and the U.S. in the six-month-old war.

“Copper is easing from record highs as investors become more cautious about the macro outlook, particularly with oil prices at $100 a barrel, raising concerns over inflation and global growth,” said Ewa Manthey, commodities strategist at ING.

LME copper has gained 17% so far this year, driven mainly by a flow of metal to the U.S. on speculation about tariffs being imposed on refined copper there, creating shortages elsewhere.

On Tuesday, analyst Natalie Scott-Gray at brokerage StoneX estimated more than 1.2 million tons of copper have entered the U.S. since Washington launched its Section 232 investigation into copper in February last year, leaving available material outside the country at “historically low levels”.

COMEX copper fell 0.9% to $6.76 a lb, bringing the premium of COMEX over LME copper to $267 a ton.

COMEX copper inventories continued to climb, reaching 797,275 short tons, or 723,275 metric tons as of Tuesday.

LME zinc rose 0.3% to $4,032 a ton after touching $4,051.50 for its strongest since April 2022.

“Zinc’s move above $4,000 a ton reflects a much tighter physical market, with ongoing mine supply challenges continuing to support prices,” Manthey said.

Among other metals, LME aluminium fell 0.4% to $3,327.50 a ton, lead lost 0.2% to $1,911 and nickel dipped 0.1% to $16,850 while tin gained 0.6% to

$55,200.