Copper rose to around $5.50 per pound on Wednesday, fully reversing the previous session’s losses as optimism over a potential Middle East ceasefire fueled a broad recovery across metals markets. The United States is reportedly pursuing diplomatic efforts to end the conflict with Iran, though regional mediators are still awaiting a response from Tehran after it denied engaging in direct talks with Washington.
Recently, copper and other base metals had come under intense selling pressure as the war involving Iran drove energy prices sharply higher, heightening inflation risks and clouding the outlook for global growth. At the same time, the pullback in prices appears to have drawn in stronger Chinese buying. Industry data show that China’s copper inventories registered their largest weekly decline of the year, while manufacturing demand in the country continued to recover following a post–Lunar New Year slowdown in February.
