Copper futures fell toward the $6-per-pound mark on Wednesday, the lowest level in two weeks, as base metals retreated amid escalating conflict in the Middle East, which strengthened the US dollar and darkened the outlook for global manufacturing. The exchange of attacks between the US and Iran led Washington to move against Iranian energy sales, while President Trump declared the current ceasefire invalid. Rising energy costs pushed up borrowing costs worldwide, further weighing on the manufacturing outlook.
These pressures outweighed copper supply concerns stemming from a shortage of sulphuric acid in the Middle East since the start of the conflict, a key input in copper refining. The impact of the shortfall has been partially mitigated by higher shipments from alternative sources, with Canadian export volumes of non-metallic minerals—dominated by sulphur—surging 50% month-on-month in May.