Copper prices climbed on Monday, reaching levels not seen since late January as supply shortage concerns took precedence over demand worries tied to the stalemate in the Iran war.
By 1030 GMT, the benchmark three-month copper contract on the London Metal Exchange had gained 1.3% to trade at $13,573 a metric ton. That price marked the strongest reading for the contract since January 29.
The metal was headed for a sixth consecutive session of gains, the longest run of consecutive rises since December. Year-to-date, copper has appreciated by roughly 10%.
Despite the recent rally, the metal's price remains well below the peak it reached in January. Market participants are weighing supply-side concerns more heavily than the demand-side uncertainty associated with the ongoing stalemate in the Iran war, and that balance has driven prices higher over the recent sessions.
Trading dynamics over the streak of gains reflect elevated attention to physical availability and potential shortfalls in copper supply. At the same time, the market continues to monitor demand signals that are tied to geopolitical uncertainty in Iran, which has weighed on sentiment in recent periods.
The combination of a supply-driven narrative pushing prices up and lingering demand questions related to the Iran war has produced the current market environment in which prices have strengthened but remain short of January highs.
Investors and industry participants will likely continue to track indicators of both availability and demand as the market processes these competing signals.
Data snapshot
- Benchmark three-month LME copper: $13,573 per metric ton (up 1.3% by 1030 GMT)
- Strongest level since: January 29
- Consecutive sessions of gains: six (on track)
- Year-to-date performance: approximately +10%