Copper Prices Retreat from Record Highs Amid Middle East Tensions

Copper prices have retreated from record highs as hostilities in the Middle East escalate, raising concerns about global growth and demand. The metal had reached an all-time high of USD14,779 on Tuesday but slipped 0.5% to USD14,641 a metric ton by 1045 GMT on Wednesday.

The London Metal Exchange (LME) copper has gained 25% since hitting a three-month low in March, driven mainly by a flow of metal to the US on speculation about tariffs being imposed on refined copper there. Analyst Natalie Scott-Gray at brokerage StoneX estimated that more than 1.2 million tons of copper have entered the US since Washington launched its Section 232 investigation into copper in February last year.

LME zinc rose 0.2% to USD4,029.50 a ton after touching USD4,051.50 for its strongest since April 2022. 'Zinc's move above USD4,000 a ton reflects a much tighter physical market, with ongoing mine supply challenges continuing to support prices,' said Ewa Manthey, commodities strategist at ING.