Copper eases, aluminium gains as Iran denies talks to end conflict

LONDON: Copper lost ground on Thursday as elevated inventory levels and macroeconomic concerns pressured the metal, while aluminium rose to its highest in almost a week after Iran denied holding talks to wind down the conflict in the Middle East. Benchmark three-month copper on the London Metal Exchange was down 0. 4% to $12, 267. 50 per metric ton as of 1030 GMT, having fallen as much as 1. 7% earlier in the session. The metal widely used in power and construction closed up 1. 8% on Wednesday thanks to a bout of dip buying by Chinese consumers looking to restock, traders said, as well as a softer dollar, which makes dollar-denominated metals more affordable for holders of other currencies. Copper, considered a bellwether for the health of the global economy, is under pressure due to concerns that the U. S. -Israeli war on Iran will hurt growth. Furthermore, copper stocks in LME-approved warehouses remain at a nearly eight-year high of about 360, 000 tons and are up around 150% since the start of the year. “I think copper was under pressure before the conflict started, just because of the buildup of physical copper in warehouses, ” said SP Angel analyst John Meyer. U. S. President ​Donald Trump said Iran was desperate to make a deal to end nearly four weeks of fighting, contradicting the Iranian foreign minister, who said his country was reviewing a U. S. proposal but had ​no intention of holding talks to end the conflict. Aluminium meanwhile rose 1. 5% to $3, 290. 50 a ton, touching its highest since March 20 on fears that smelters in the Middle East, which account for around 9% of global supply, will be unable to send metal to world markets and bring in raw materials. Zinc gained 1. 1% to $3, 112, lead lost 0. 9% to $1, 894, nickel slipped 0. 6% to $17, 235 and tin eased 0. 7% to $44, 195.

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