Copper declines amid mounting US-Iran tensions

Copper prices declined slightly on Friday, amid concerns over the continued closure of the Strait of Hormuz, in light of the absence of any progress in peace talks between the United States and Iran.

And the benchmark three-month copper price on the London Metal Exchange fell by 0.5% to 13,290 dollars per metric ton during official trading.

And despite the extension of the ceasefire between Israel and Lebanon for a period of three weeks, American President Donald Trump said that he is not in a hurry to reach a peace agreement with Iran.

And Ole Hansen, head of commodity strategy at Saxo Bank, said: "Although the risks of military escalation have receded currently, the scale of the disruption is increasing day by day."

And copper on the London exchange had recorded a record level at 14,527.50 dollars per ton on January 29, but it currently faces mixed pressures, between concerns of weak economic activity affecting demand, and potential disruptions in supplies due to a shortage of sulfuric acid.

And Hansen pointed out that the main resistance level lies at 13,525 dollars per ton, which is a level the price has failed to surpass several times since early February, adding that the current state of uncertainty explains the movement of prices in a narrow range during the past two weeks.

And prices were also subjected to additional pressure after the International Copper Study Group announced that the global refined copper market might shift to a surplus in the year 2026.

And in China, the most traded copper contract on the Shanghai Futures Exchange fell by 0.7% to 102,460 yuan (14,988.52 dollars) per ton, to record a weekly loss of about 0.31%.

In contrast, prices received some support from the continued decline in inventories at the Shanghai exchange, which fell by 16.3% during the past week, and have decreased by more than half since early March.

Movements of other metals

Nickel rose on the London exchange by 0.1% to 18,750 dollars per ton, after it touched its highest levels since January 29 at 18,850 dollars, supported by concerns regarding supplies. And the International Nickel Study Group had predicted the market's shift to an annual deficit for the first time since 2021.

And in the rest of the metals, aluminum fell by 0.6% to 3,598 dollars per ton, while zinc rose by 0.6% to 3,473.50 dollars, and lead climbed 0.3% to 1,961 dollars, and tin also increased by 0.4% to 50,400 dollars per ton.