Copper hits six-week high on prospects for more US-Iran peace talks

Copper prices scaled their highest in six weeks on Tuesday on optimism about the possibility of U.S.-Iran peace talks restarting and due to a weaker dollar. Benchmark three-month copper on the London Metal Exchange rose 0.8% to $13,161 per metric ton by 0945 GMT, having touched its highest level since March 3 at $13,210.50. Negotiating teams from the U.S. and Iran could return to Islamabad later this week, five sources told Reuters. "Optimism that the US and Iran could restart peace talks is helping reverse some of the pressure metals faced recently from fears of surging energy costs and weaker economic growth," said Ewa Manthey, commodities strategist at ING. "That said, the market remains highly headline driven. Any escalation in the conflict, renewed spikes in energy prices or signs of weaker demand could quickly undermine sentiment." The most-traded copper contract on the Shanghai Futures Exchange ended daytime trade up 2.1% at 101,190 yuan ($14,844.43) per ton. Also supporting prices was a softer dollar index, trading around its weakest since March 2, which makes commodities priced in the U.S. currency cheaper for buyers using other currencies. Copper, used in construction, power and manufacturing, also found support from concerns that soaring energy prices caused by the Middle East war would lift overall costs. The war has already raised costs for Codelco, the world's top copper miner, by 10 cents per pound, while Antofagasta flagged concerns over mounting fuel and input costs. "Meanwhile mine supply constraints remain with Chile’s copper output underperforming in 2026 so far," said analyst Sudakshina Unnikrishnan at Standard Chartered Bank. Tightness in sulphuric acid supply, exacerbated by reports that major supplier China will halt exports of the material from May, fanned concerns over a potential hit to copper and nickel output. LME nickel gained 1.1% to $17,890 a ton, having touched its highest since February 27 at $17,950, after top supplier Indonesia revised the formula used to determine mineral reference prices. Among other metals, LME aluminium dropped 1.1% to $3,567 a ton, zinc rose 0.3% to $3,326, lead added 0.4% to $1,929 and tin jumped 2.6% to $49,500.