Copper prices have reached their lowest level in over three months amid the escalation of armed conflict in the Middle East. The rise in geopolitical tensions has led to a decrease in interest in risk assets on global financial markets, as well as heightened concerns about global inflation and economic growth prospects.
This is reported by Finway
Price Dynamics of Copper on International Exchanges
On the London Metal Exchange (LME), the price of copper dropped by 1.8% following a significant decline of 6.7% last week. This marks the largest weekly decrease since April 2025. The war in the Middle East has already impacted the rise in oil and gas prices, which, in turn, could negatively affect the pace of economic activity worldwide and increase inflationary pressure. Analysts believe that as a result, central banks may be forced to tighten monetary policy and raise interest rates.
“Copper prices have not yet reached the bottom, as the market is pricing in the prospect of recession and inflation,” said Yang Yuhao, a senior analyst at Zhejiang Hailiang Co., a major Chinese manufacturer of copper pipes and rods.
Demand in China and Current Quotations
The drop in price below $14,485 per ton on the Shanghai Futures Exchange has led to a significant increase in purchasing activity among Chinese manufacturers. It is noted that many of their orders are already filled through next month, indicating sustained demand in the domestic market of China. According to Yang Yuhao, this will support domestic copper prices in the country at a higher level compared to London quotations.
As of 4:00 AM Kyiv time, the price of copper on the LME has decreased by 0.7% to $11,840 per ton, meaning that 1 kilogram of the metal costs $11.84.