01.04.202609:22:24UTC+00Copper Extends Rebound from 3-Month Low

Copper futures in the US climbed above $5.60 per pound, extending their rebound from the three-month low of $5.34 reached in late March. The move was driven by de-escalatory rhetoric from both US and Iranian officials regarding their conflict, which improved sentiment around the global manufacturing outlook.

Both presidents signaled a willingness to end the war if their respective conditions are met, fueling hopes that an eventual settlement could restore energy exports from the Persian Gulf and avert a global stagflation shock. In addition to the brighter prospects for factory activity, a weaker dollar—amid reduced demand for safe-haven assets—lent further support to dollar-denominated commodities, including copper.

Nonetheless, copper prices remained about 10% lower year-to-date, as abundant supply has dampened speculative bets that mine production will lag behind rapidly growing demand from data center and power grid construction. Inventories at LME warehouses hovered near their highest levels in six years, while SHFE stockpiles were close to record highs.