Copper Prices Retreat from Records as US-Iran Tensions Rise
Copper prices have retreated from record territory due to heightened tensions between the US and Iran, overshadowing strong earnings reports from Teck Resources and Freeport-McMoRan. The Comex copper price for September delivery dropped as much as 2.5% to $6.33 a pound, with a 2.4% decline to $6.34 as of 11:45 a.m. in New York.
Despite the pullback, copper remains up over 12% this year due to tight supplies, US tariff expectations, and strong Chinese demand. Teck Resources reported a significant earnings beat, with adjusted EBITDA tripling to C$2.19 billion ($1.6 billion) in the second quarter.
Freeport-McMoRan also exceeded estimates, with adjusted net income of $1.1 billion, or $0.74 per share, on revenue of $7 billion. The company's copper sales of 710 million pounds (about 322,000 tonnes) came in ahead of guidance.
Meanwhile, the Cobre Panama mine in Panama is making progress toward a restart, with First Quantum Minerals set to have a 60% to 65% stake in the operation if a state-owned company is created. The mine has been shut since late 2023.