Copper prices surged on the London Metal Exchange today, reaching their highest levels since the onset of the war in the Middle East. The price of copper per pound traded at US$5.93, approaching the critical US$6 threshold.
Market gains followed statements from U.S. President Donald Trump, who indicated that negotiations with Tehran are ongoing despite the continued blockade of the Strait of Hormuz. This diplomatic movement helped lift industrial metals after weeks of volatility caused by regional conflict.
“The copper rally has been driven by renewed optimism surrounding a possible resumption of peace talks between the U.S. and Iran,” said Ignacio Mieres, head of research at XTB. He noted that the news eased fears of long-term supply chain disruptions.
While the metal faced significant downward pressure during the recent escalation in the Middle East, it has recovered most of its losses over the last three trading sessions. Since the start of the conflict, the price of copper has retreated only 1.16%.
The price jump provided a boost to the Chilean peso, which rose 0.80% against the dollar, moving below the 900 pesos mark.
China's sulfuric acid export ban
Investors also monitored China's recent decision to halt exports of sulfuric acid, a critical input for the leaching process used to extract copper from oxidized ores. The move has raised concerns regarding the cost of hydrometallurgical production.
Máximo Pacheco, chairman of Codelco, addressed the supply concerns by stating the state-owned miner is well-prepared. While he acknowledged that the price of sulfuric acid has risen significantly due to the war, he confirmed that Codelco secured supplies months in advance.
“Therefore, we bought it at the old prices and we bought it in sufficient quantities to cover all of Codelco's needs for sulfuric acid. In that regard, we are calm,” Pacheco said.
