Copper eases on growth concerns, firmer dollar
Copper prices fell on Tuesday as escalating tensions in the Middle East increased worries about global growth and demand for industrial metals while the firmer dollar reinforced negative sentiment.
Three-month copper on the London Metal Exchange was down 0.1% to $9,697 per metric ton, as of 1017 GMT.
Global stocks slid while oil rose as fighting between Israel and Iran entered its fifth day, sowing fears of a broader regional conflict. Higher oil prices dampen economic growth and stoke inflationary pressures.
'Another war has broken out, unsettling investors, raising concerns about long-term global growth, and prompting a shift away from cyclical assets like base metals and move towards safe-haven assets,' said Panmure Liberum analyst Tom Price.
The U.S. dollar index ticked up, making dollar-priced commodities more expensive for buyers holding other currencies.
Meanwhile, Citi in a note said it expects copper prices to dip to $8,800 in the third quarter if the U.S. imposes tariffs on copper imports. Until then, U.S. copper imports may worsen supply tightness outside the United States, it said.
Copper, other metals drop
U.S. President Donald Trump in February ordered a probe into possible tariffs on copper imports to rebuild U.S. production.
The probe has resulted in a price premium for COMEX copper futures against LME contracts, which traders and producers have capitalised on by diverting copper supplies from other markets to the United States.
U.S. COMEX copper futures traded at a $4.806 lb, bringing the premium over LME copper to $898 a ton.
LME aluminium was up 0.4% to $2,522 a ton, zinc fell 0.5% to $2,643.5, nickel shed 0.1% to $15,055 and tin edged down 0.6% to $32,385. Lead was down 1.2% at $1,983.5.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Oil prices fall as US delays decision on direct Iran involvement
SINGAPORE: Oil prices fell on Friday after the White House delayed a decision on U.S. involvement in the Israel-Iran conflict yet they remained on course for a third consecutive weekly rise. Brent crude futures were down $2.57, or around 3.3%, to $76.28 a barrel by 1204 GMT but still set to gain nearly 3% on the week. U.S. West Texas Intermediate crude for July – which did not settle on Thursday as it was a U.S. holiday and expires on Friday - was up marginally at $75.19. The more liquid August contract was up around 0.4%, or 31 cents, to $73.19. On Thursday prices jumped almost 3% after Israel bombed nuclear targets in Iran, while Iran - OPEC's third-largest producer - fired missiles and drones at Israel. Neither side showed any sign of backing down in the week-old war. Brent prices retreated after the White House said President Donald Trump would decide whether the U.S. will get involved in the Israel-Iran conflict in the next two weeks. Oil prices jump 'However, while Israel and Iran carry on pounding away at each other there can always be an unintended action that escalates the conflict and touches upon oil infrastructure,' PVM analyst John Evans said. Iran has in the past threatened to close the Strait of Hormuz, a vital route for Middle East oil exports. However, oil exports so far have not been disrupted and there is no shortage of supply, said Giovanni Staunovo, an analyst at UBS. 'The direction of oil prices from here will depend on whether there are supply disruptions.' An escalation of the conflict in such a way that Israel attacks export infrastructure or Iran disrupts shipping through the strait could lead to $100 per barrel of oil being a reality, said Panmure Liberum analyst Ashley Kelty.
Business Recorder
an hour ago
- Business Recorder
Copper gains on dollar dip but geopolitical, tariff uncertainty linger
LONDON: Copper prices edged higher on Friday, supported by a slightly softer dollar, although gains were capped by concerns over the Iran-Israel war, U.S. tariffs and Chinese demand. Three-month copper on the London Metal Exchange was up 0.4% at $9,652 a metric ton in official open-outcry trading. Earlier in the session, prices hit the weakest since June 13 at $9,558.50. The U.S. dollar index eased 0.3%, making dollar-denominated metals more attractive to buyers using other currencies. 'We've got the geopolitical uncertainty in the background although maybe a little bit of reprieve on that side in the sense that Trump wants to allow a bit more time for diplomacy,' said Nitesh Shah, commodity strategist at WisdomTree. U.S. President Donald Trump will decide in the next two weeks whether the U.S. will get involved in the Israel-Iran air war, the White House said on Thursday. 'But we still have all the trade fears, which may have become a secondary feature over the last week. It's not that fardown the line before the expiry of the 90-day pause on the Liberation Day tariffs.' Copper hits near one-week low on stronger dollar, growth fears The 90-day pause in Trump's broadest 'reciprocal' tariffs will end on July 8. A Shanghai-based metals analyst at a futures firm said in addition to the Middle East and U.S. interest rates, investors were concerned about weaker demand in top metals consumer China. China's refined copper output in May gained 13.6% on the year to 1.25 million metric tons, data on Wednesday showed, in line with April's output, while the country's demand for metals such as copper and aluminium has been muted by summer seasonal weakness. U.S. Comex copper futures steadied at $4.88 a lb, bringing the premium of Comex over LME copper to over $1,000 a ton. Among other metals, LME aluminium ticked up 0.3% to $2,529, nickel fell 0.8% to $14,940, zinc edged up 0.1% to $2,643.5, lead dropped 0.2% to $1,988.5 while tin gained 1.3% to $32,425.
Business Recorder
3 hours ago
- Business Recorder
Audi could build plant in US to placate Trump, Spiegel reports
BERLIN: Volkswagen's premium brand Audi could build a plant at a new location in the United States under scenarios being considered to placate President Donald Trump in the tariff conflict, the Spiegel news magazine reported on Friday. Audi is considering building a plant in the southern U.S., which would be the more expensive option out of a number of scenarios being considered, with company sources estimating costs of up to 4 billion euros ($4.6 billion), the report said. An Audi spokesperson said that the company aims to build up more of a presence in the United States. 'We are currently examining various scenarios for this. We are confident that we will make a decision this year in consultation with the (Volkswagen) group on how this will look in concrete terms,' she said in an emailed statement, reaffirming earlier comments made by the company. Audi has no production of its own in the U.S., but Volkswagen has a plant in Chattanooga, Tennessee and one under construction near Columbia, South Carolina. Trump's announcement of sweeping tariffs has already racked up hundreds of millions of euros in costs for German carmakers heavily reliant on their export business, according to an industry representative. BMW, Mercedes-Benz and Volkswagen are in talks with Washington over a possible import tariff deal, seeking to use their U.S. investments and exports as leverage to soften any blow, sources have told Reuters.
