Copper traded steadily around $5.50 per pound on Tuesday but remained on course for a monthly decline of nearly 10% in March, its weakest performance since July of last year. The metal, along with other industrial commodities, has come under sustained pressure as the conflict in the Middle East and a sharp rise in energy prices have intensified concerns over inflation and a slowdown in global industrial activity.
Producers are bracing for higher operating costs and thinner margins amid mounting uncertainty linked to the war involving Iran and the effective closure of the Strait of Hormuz. The conflict has disrupted oil and LNG shipments, undermining energy supply chains critical to copper production. Many mines depend on diesel-powered equipment, while processing facilities typically require reliable grid electricity to refine ore, making the sector particularly vulnerable to energy market turmoil.