Middle East Tensions Send Copper Prices Reeling
Copper prices have retreated from record highs due to rising concerns over global growth and metals demand.
The metal had touched an all-time high of $14,779 on Tuesday but dropped by 0.5% to $14,641 a metric ton on the London Metal Exchange (LME) as hostilities in the Middle East escalated.
Oil prices have surged above $100 a barrel, with Ewa Manthey, commodities strategist at ING, stating that 'copper is easing from record highs as investors become more cautious about the macro outlook, particularly with oil prices at $100 a barrel, raising concerns over inflation and global growth.'
The flow of metal to the U.S. has been driven mainly by speculation about tariffs being imposed on refined copper there, creating shortages elsewhere.
LME zinc rose 0.3% to $4,032 a ton after touching its strongest level since April 2022, while LME aluminium fell 0.4% to $3,327.50 a ton.