Copper prices experienced a slight increase on Wednesday, buoyed by a weaker dollar and a more optimistic market sentiment linked to a fragile ceasefire between Iran and Israel. On the London Metal Exchange (LME), three-month copper rose by 0.18%, reaching $9,686 per metric ton.
Meanwhile, the Shanghai Futures Exchange reported steady prices, with the most-traded copper contract at 78,480 yuan ($10,945.45) a ton. The ceasefire remains uncertain as Israel has stated its intention to respond aggressively to Iranian missile strikes, which followed an announcement from U.S. President Donald Trump regarding the cessation of hostilities.
A Beijing-based metals analyst noted that traders are seeking clear signals amid this volatility. The ceasefire between Israel and Iran may not be stable, and comments from U.S. Federal Reserve Chair Jerome Powell regarding interest rates have been rather neutral, contributing to market ambiguity.
In a related area, U.S. airstrikes reportedly did not significantly impair Iran’s nuclear capabilities, only delaying them by a few months, as indicated by an initial U.S. intelligence assessment. The dollar’s decline happened even after Powell stated in congressional testimony that he and many at the Fed expect inflation to rise soon, and emphasized that there was no rush to lower borrowing costs.
A weaker dollar tends to enhance the appeal of dollar-priced metals for international buyers utilizing other currencies. On other metal markets, LME aluminum fell for a second straight day, down 0.52% to $2,565.5 per ton, while SHFE aluminum decreased for the fifth consecutive day, down 0.34% to 20,260 yuan.
In contrast, LME zinc saw a minor uptick of 0.26% to $2,688.5, and lead increased by 0.15% to $2,022. Nickel also experienced a slight rise of 0.1% to $14,935.
In Shanghai, lead climbed 0.95% to 17,090 yuan, and nickel rose by 0.42% to 117,720 yuan, while tin saw a decline of 0.36% to 262,240 yuan.