Copper prices in the US climbed above $5.40 per pound on Monday, rebounding from an intraday low of around $5.20—an over three-month trough—amid improving sentiment about global manufacturing. The move followed signs of potential de-escalation in the Middle East, which eased some concerns about broader economic risks.
US President Trump said that strikes on Iranian energy infrastructure would be paused for five days after what he described as constructive talks with Tehran. Iran denied that such talks had occurred, but Washington’s apparent effort to bring down energy prices helped temper stagflation fears and bolstered forecasts for factory output worldwide.
The rally in copper was further supported by a weaker US dollar, as the geopolitical developments reinforced expectations that the Federal Reserve could cut interest rates later this year.
Despite the latest gains, copper prices remained lower on a year-to-date basis, pressured by abundant supply. Inventories at LME warehouses were hovering near their highest levels in six years, while stockpiles on the SHFE were close to record highs.
