Copper prices in the international market declined on Tuesday as escalating tensions between Israel and Iran dampened investor sentiment. LME copper prices along with other metals traded lower, further pressured by a stronger US dollar.
On the London Metal Exchange (LME), copper price was down 0.3% at $9,677 per metric ton. However, copper prices on the Shanghai Futures Exchange (SHFE) edged up 0.2% to 78,470 yuan per metric ton.
On the domestic front, copper prices on Multi Commodity Exchange (MCX) traded higher. MCX copper rate was up 0.19% at ₹880.20 per kg, having opened lower at ₹876.30 compared to its previous close of ₹878.55 level.
The escalation in the Israel-Iran war has driven investors away from risk assets, weighing on industrial metals. Both nations continued exchanging strikes for a fifth consecutive day, prompting US President Donald Trump to call for the evacuation of Tehran, citing Iran’s refusal to accept a proposed nuclear deal.
Meanwhile, the US dollar index strengthened 0.3% against a basket of major currencies, making dollar-denominated commodities costlier for non-US buyers.
Despite geopolitical concerns, better-than-expected retail sales data from China buoyed hopes of a recovery in metal demand from the world’s largest consumer, offering some support to copper prices.
“The recent rally in LME copper was driven by stronger-than-expected retail sales data from China, which lifted expectations of a demand revival. However, investor sentiment remains cautious due to geopolitical tensions in the Middle East and mixed economic signals from China,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Additionally, LME copper inventories have dropped to a one-year low at 114,475 metric tons, suggesting tighter supply conditions. “This decline in stockpiles indicates potential supply constraints, which could support prices if demand continues to improve,” Trivedi added.
On the outlook, Trivedi remains bullish. “LME copper may rise to $9,800 per metric ton, while MCX copper could reach ₹970 per kg in the next month,” he said.
Other Metal Prices
Gold prices were largely steady after recent gains driven by safe-haven demand amid geopolitical tensions. MCX gold rate was up 0.07% at ₹99,245 per 10 grams. In the international bullion market, spot gold price rose 0.3% to $3,392.29 an ounce, while US gold futures fell 0.2% to $3,410.90.
LME aluminium prices eased 0.2% to $2,508 a ton, zinc prices fell 0.4% to $2,646, lead declined 0.5% to $1,996.50 and nickel price dropped 0.4% to $15,005. Tin was down 0.3% at $32,505.
On SHFE, aluminium price was little changed at 20,405 yuan a ton, lead was flat at 16,910 yuan, nickel fell 0.9% to 118,640 yuan, while zinc gained 0.1% at 21,820 yuan and tin fell 0.4% to 263,400 yuan.
(With inputs from Reuters)
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