Copper prices continued to decline for the fourth consecutive session, with US copper futures hovering around $5.91 per pound, down from the record high of $6.12 recorded on April 22. The decline reflects growing concerns about global manufacturing activity amid rising geopolitical tensions.
Geopolitical Pressure Impacts Copper Market
Stalled negotiations between the United States and Iran have created uncertainty across global markets. At the same time, increasingly hawkish statements from both sides have strengthened the US dollar, making copper more expensive for international buyers.
A stronger dollar typically weakens demand for industrial metals, placing short-term pressure on the copper market.
Supply Risks Continue to Support Prices
Despite recent declines, copper prices remain close to historic highs due to ongoing supply disruptions.
In Chile, the world’s largest copper producer, production has been affected by supply chain issues. The Middle East conflict disrupted sulphur shipments to China, leading to reduced exports of sulphuric acid— a critical material used in nearly half of Chile’s copper refining capacity.
These disruptions have tightened global supply and helped prevent a sharper drop in prices.
Strong Demand from Technology Sector
On the demand side, the outlook remains positive. Major technology companies are accelerating investments in large-scale data centers, particularly in key manufacturing regions.
This trend continues to drive long-term copper demand due to its essential role in electrification, power infrastructure, and digital expansion.
Copper Market Outlook
While short-term pressure persists due to geopolitical tensions and a strong US dollar, the broader outlook remains supported by supply constraints and strong industrial demand.
Businesses and investors should continue monitoring global developments, as these factors will influence future copper price trends.
Source: Trading Economics
