Copper prices stabilized above $14,000 a metric ton on Tuesday, recovering from a 2-1/2-month low earlier in the session. The decline came amid uncertainty surrounding the US midterm elections and ongoing tensions between the US and Iran. Benchmark three-month copper on the London Metal Exchange fell 2.1% to $14,034, after hitting a low of $13,883.
Investors are closely watching the potential impact of the midterm elections on fiscal policy, while also monitoring the US-Iran conflict. A senior Iranian official told Reuters that a deal to end the war remains distant, despite mediation efforts by Qatar. Analyst Ed Meir from Marex noted that copper may be aligning with the recent downturn in the AI semiconductor sector.
The market was also influenced by an inflow of 17,325 tons of copper into LME-registered warehouses in the US, pushing stocks to a four-month high of 309,650 tons. Meanwhile, the weakening yuan made dollar-priced metals more expensive for Chinese buyers, though tight physical supply in China limited further losses. The Yangshan copper premium remained near $200 a ton, its highest in over a decade.
Other LME metals also saw declines: aluminium dropped 2.0% to $3,032.50, zinc fell 2.6% to $3,790.50, lead decreased 1.1% to $1,885, and nickel eased 1.3% to $15,340. Tin experienced the steepest drop, sliding 4.3% to $47,450, its lowest since mid-April.