Copper futures rose above $6.35 per pound on Monday as easing energy prices brightened the outlook for overall manufacturing demand. Iran said that the opening round of talks with the United States had been encouraging, building on a memorandum of understanding signed the previous week. That agreement aims to restore oil and fuel exports through the Strait of Hormuz, lowering input costs for goods producers and supporting demand for widely used base metals such as copper.
At the same time, the prospect of lower borrowing costs stemming from these developments has improved financing conditions for data center operators, enabling them to raise capital for new projects. According to BHP, each data center requires between 5,000 and 50,000 tons of copper, pointing to a potential boost in near-term consumption.
However, gains were capped by the return of sulfuric acid supply amid hopes for peace in the Middle East, easing a key constraint in the copper refining process. Additional headwinds to a stronger price rebound came as Rio Tinto resumed copper concentrate exports from its giant Oyu Tolgoi mine in Mongolia.
