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As reports Bloomberg, on the London Metal Exchange (LME) copper quotations grew by about 0.6% – to $14,025 per ton. This is just a step away from the absolute record above $14,500, recorded in January.
Additional pressure on the market was exerted by political statements: investors reacted to the words of Donald Trump that the truce with Iran is “on life support”. Against this background, fears of new disruptions in global commodity trade intensified.
Prices are simultaneously supported by several factors. The main one is the recovery of demand in China, the largest consumer of copper in the world. Additionally, the market is reacting to supply side risks: disruptions in the Middle East have already affected the supply of sulfur, which is used in some production chains of the copper industry.
Another notable trend is copper’s increasing correlation with US stock markets. Against the backdrop of growth in the technology sector, the metal is increasingly moving in sync with the shares of large IT companies in the US.
According to the source, in recent weeks it has been demand factors and supply constraints that have outweighed fears of a slowdown in the global economy. However, after the latest political statements around Iran, volatility in the markets has increased again.
