Copper prices were stable on Thursday, bolstered by hopes of a detente between the US and Iran, a weakening dollar, along with signs of vigorous demand in China, the world's largest consumer of the red metal. In morning trading, benchmark copper on the London Metal Exchange (LME) was virtually unchanged at $13,384 per tonne.
In particular, used in real estate, electrical infrastructure and manufacturing, the red metal had reached $13,462 per tonne on Wednesday, its highest level since April 23.
The market is closely monitoring developments in the Iranian situation. US President Donald Trump predicted a swift end to hostilities with Iran, while Tehran is reviewing a US proposal that, according to several sources, would officially end the conflict.
The retreat of the dollar is also helping to support industrial metals by reducing their cost for buyers using other currencies.
Demand remains strong in China
In China, several indicators further reflect solid demand. Copper inventories in warehouses monitored by the Shanghai Futures Exchange have more than halved since mid-March, falling to 192,025 tonnes.
The Yangshan copper premium, considered a bellwether for Chinese import appetite, has surged over 60% since the beginning of March.
Lead on the move
Amongst other metals, lead, an essential component in batteries, reached $1,990 per tonne, its highest level since February 27. It was up 0.2% at $1,980 dollars in late morning trading.
According to brokers, this advance is due to the accumulation of large positions in lead warrants and the holding of over 40% of contracts maturing in May. This concentration suggests that a significant portion of LME-deliverable lead is tied up ahead of the May expiry, heightening the risk of a supply squeeze.
Elsewhere on the LME, aluminum fell 0.9% to $3,489 per tonne, zinc advanced 0.7% to $3,422, tin rose 0.5% to $54,100, and nickel shed 1% to $19,000.
