LONDON: Copper climbed to its highest in more than two weeks on Thursday as the market shrugged off tit-for-tat strikes by Iran and the US and the dollar dipped after a recent surge.
Benchmark three-month copper on the London Metal Exchange was up 2.8 percent at USD13,535 a metric ton as of 1620 GMT. It rose as much as 2.9 percent - its biggest intraday leap since May 11 - to USD13,541, the highest since June 23.
Copper had fallen on Wednesday on demand concerns after US President Donald Trump said the memorandum of understanding with Iran to end the Gulf conflict was “over.”
Trump has since said Tehran wants to “make a deal so badly” and that he did not expect a return to full-fledged war.
“The bounce can only relate to Trump making his claim,” said Panmure Liberum analyst Tom Price. “Whether it’s true or not, who knows, but the market is always willing to buy some sort of peace pitch by Trump. And if you’re into short-term trading, that’s an exciting opportunity for you right there.”
Despite low inventories, the cash LME copper contract was trading at a USD50-a-ton discount to the three-month forward, suggesting no pressing need for near-term metal.
The cash aluminium contract was meanwhile commanding a slight premium of USD4, after 13 straight days of contango where forward prices were higher.
Aluminium rose 2.4 percent to USD3,206 a ton, also striking a two-week high after falling below prewar levels at the end of last month. LME aluminium stocks of 289,225 tons are the lowest since September 2022.
Zinc gained 3.2 percent to USD3,630, notching a three-week peak and nearing what would be its highest since 2022 after a fire hit a South Korean smelter.
A dip in the dollar, also supported industrial metal prices, making greenback-denominated metals more affordable for holders of other currencies. Concerns over inflation also lifted prices.
Nickel added 1.5 percent to USD16,585, tin jumped 3.3 percent to USD53,785 and lead edged up 0.1 percent to USD1,892.