FX.co ★ Copper Drops for a 4th Session

Copper futures in the US traded near $5.95, falling for a fourth consecutive session after testing record highs at $6.12 on April 22nd, as the ongoing lack of tangible progress in the US–Iran conflict weighed on the outlook for global manufacturing. The exchange of hawkish rhetoric between both sides also supported the dollar, eroding the purchasing power of foreign buyers of industrial metals.

Even so, prices remained relatively close to historical peaks, as the conflict also tightened the near-term supply outlook for copper. Output from top producer Chile came under threat after the war in the Middle East disrupted sulphur shipments to China, prompting China to curb exports of sulphuric acid—an input that is essential for roughly half of Chile’s copper refining capacity.

At the same time, major technology firms continued to sign deals that sharply accelerate data center construction across key manufacturing hubs, bolstering the demand outlook for copper given its critical role in electrification and grid infrastructure.