Copper Prices Soar on Tight Supply Expectations and Escalating Middle East Tensions
Copper prices reached a new high overnight due to expectations of tight supply. The London Metal Exchange (LME) copper price opened at $14,677/mt and eventually closed at $14,728/mt, up 1.61%. Trading volume was moderate, with 27,300 lots traded.
The Shanghai Futures Exchange (SHFE) copper contract also rose, opening at 111,170 yuan/mt and closing at 111,300 yuan/mt, up 0.94%. Trading volume on the SHFE was higher than on the LME, with 50,000 lots traded.
Market analysts pointed to tensions in the Middle East as a key driver of copper prices. The US and Iran's attacks on oil tankers and Saudi energy facilities have fueled concerns over rising inflation and market volatility.
The market is also pricing in expectations that the US will impose additional tariffs on copper cathode, which would further tighten supply.