Copper Prices Rebound on De-Escalation Hopes, Tensions Remain

Global markets were driven by US-Iran tensions and the US Federal Reserve's policy meeting this week. Initially, both countries signaled de-escalation, easing concerns about energy prices and inflationary pressure.

Copper prices recovered as risk appetite increased, but the market then entered a wait-and-see phase ahead of the Fed meeting. The Fed held rates steady, with a neutral statement that somewhat dampened expectations for further rate hikes within the year.

However, President Trump's promise to take action against Iran in response to attacks on US troops in the Middle East re-escalated geopolitical conflict risks, capping copper prices' upside. LME copper hit a weekly low of $13,570/mt before rebounding to $13,802/mt, a gain of 1.71%.

The tight supply situation for China's copper cathode eased somewhat, with SMM copper inventories in major Chinese regions rising to 111,900 mt, up 2,700 mt WoW.