Copper futures eased to $6.34 per pound on Wednesday, pulling back from the one‑week high of $6.40 reached in the previous session, amid cautious optimism about the resumption of trade through the Persian Gulf. Iran said it has an unofficial draft agreement with the United States that would end its naval blockade on vessels exiting the Strait of Hormuz, though Washington has denied the claim. Even so, the prospect of renewed flows of sulfur and sulfuric acid from GCC economies—a key supply hub—has improved expectations that copper producers will regain access to critical inputs for their production processes.
Tight supply of these inputs, which refiners use in heap leaching and in purifying copper to produce anodes, had previously prompted China to suspend exports. The resulting shortages in Chile, the world’s top copper producer, forced major refiners there to cut capacity and reduce output. At the same time, supply from state‑owned miner Codelco faces downside risk as the company pursues roughly $2 billion in cost reductions.
