Copper prices climbed on Tuesday, supported by expectations of stronger demand in China, though gains were restrained due to investor caution surrounding the ongoing Middle East conflict and Washington’s deadline for Iran to reopen the Strait of Hormuz.
Benchmark three-month copper on the London Metal Exchange rose 0.55% to $12,428 per metric ton as of 0706 GMT.
The most-active copper contract on the Shanghai Futures Exchange increased 0.34% to settle at 96,560 yuan ($14,049.38) per ton.
Inventories tracked by the Shanghai Futures Exchange have been falling since March 20, according to its weekly report.
Stocks have dropped by more than 30% since March 13 to 301,088 tons as of Friday, indicating firmer demand following earlier price declines driven by growth and inflation concerns linked to the Iran conflict, as well as in anticipation of China’s peak consumption season.
The Yangshan copper premium, which reflects China’s demand for imported copper, stood at $65 per ton as of Friday, after reaching $69 on March 25—its highest level since June 2025.
Meanwhile, U.S. President Donald Trump’s Tuesday 8 p.m. EDT (midnight GMT) deadline for Iran to reopen the Strait of Hormuz is approaching. Iran has rejected Trump’s warning to unleash “hell” on Tehran.
Brent crude futures remained above $110 per barrel, while the U.S. dollar strengthened, both of which weighed on the broader base metals market and limited copper’s upward momentum.
Aluminium prices rose amid continued concerns over supply disruptions in the Gulf region.
The London benchmark aluminium increased 1.08% to $3,507 per ton, although the most-traded Shanghai contract slipped 0.30% to 24,630 yuan per ton.
Emirates Global Aluminium stated on Friday that restoring full production at its Al Taweelah smelter in the UAE—damaged in an Iranian attack late last month—could take up to a year.
In other London Metal Exchange activity, zinc rose 0.98%, lead gained 0.34%, nickel fell 0.18%, and tin edged up 0.16%.
On the Shanghai Futures Exchange, zinc climbed 0.21%, lead declined 0.09%, nickel dropped 0.78%, and tin eased 0.48%.
