The price of copper continues to decrease in global markets. The main reasons are the geopolitical tension between the US and Iran, as well as weak economic indicators from China, which are putting pressure on the positions of industrial metals.
This is reported by Finway
Geopolitical Tension Affects Metal Markets
Recently, US President Donald Trump has repeatedly issued threats against Iran, as agreements to cease conflict and open the Strait of Hormuz remain unachieved. This has led to a sharp increase in oil prices and heightened expectations that central banks will be forced to continue tightening monetary policy. Such actions could negatively impact metal markets, as they limit global economic growth and reduce demand from producers.
“Global bond markets are showing increased volatility due to the deadlock in the war with Iran. Since the ceasefire took effect in early April, Trump has repeatedly threatened to resume bombings that began in late February.”
Copper Prices Fall Amid Economic Uncertainty
At the beginning of trading in Asia, the price of copper fell by 1.2% to $13,394.50 per ton, continuing a decline that had lasted for the previous two trading sessions after a record closing level on May 13. As of 6:18 AM Kyiv time, prices on the London Metal Exchange were $13,513 per ton, equivalent to $13.51 per kilogram of metal.
Additional pressure on the market comes from weak economic data from China – a key consumer of copper. In particular, last month saw an unexpected decline in fixed asset investment, while retail sales and industrial production did not meet analysts’ expectations, deepening pessimistic sentiments in the metal markets.