Copper prices are seen heading for a record close as most other industrial metals also recorded gains after investors returned to focus on riskier assets despite ongoing tensions between the United States (US) and Iran.
Five of the six major contracts on the London Metal Exchange (LME) recorded gains after the exchange's overall metals index closed at a record high last Friday. Metals such as copper, aluminum and zinc have remained resilient throughout the Middle East conflict as global demand remains strong amid tighter supplies.
Last week's upward momentum continued on Monday despite US President Donald Trump rejecting Iran's latest peace proposal and describing it as unacceptable.
However, the market is not seen to be too concerned about the risk of escalating conflict as industrial metals and Asian equity markets continue to record gains.
Market analysts see copper's current movements more influenced by market fundamentals than geopolitical sentiment. Tighter supplies and a decline in metal inventories in China are the main factors that continue to support copper prices.
Most base metals are now trading higher this year despite markets having previously been under pressure at the start of the Iran-US conflict.
Copper alone is reported to have risen around 10% since the end of 2025, while positive sentiment towards the outlook for industrial metals continues to grow among global market players.
China’s continued strong exports have also been an additional catalyst for the rise in industrial metals prices. April trade data showed the country’s exports rose 14% year-on-year, including shipments of copper-intensive green technology products.
Meanwhile, strong demand for metals from the global energy transition and defence sectors is expected to continue to support copper prices despite the risk of trade disruptions in the Strait of Hormuz.
As of midday Shanghai time, copper prices were up 0.2% to $13,600 a tonne, while aluminium rose 0.6% and nickel jumped around 1.6%.
