Copper steady while aluminium falls as Trump pauses attacks on Iranian energy plants

LONDON: Copper prices were steady on Friday while aluminium fell as U.S. President Donald Trump extended a deadline for striking Iran’s energy plants, even though markets appeared sceptical about the chances of a deal being agreed by the two sides. Benchmark three-month copper on the London Metal Exchange was down 0.1% at $12,132 a metric ton by 1049 GMT. Copper, widely used in power and construction, has lost 9% since the U.S.-Israeli war on Iran began on February 28, threatening global economic growth and fanning inflation. “Prices lack fundamental support and are expected to remain volatile, dominated by macro news and investor flows,” Macquarie analysts said in a research note. “An end to the Iran war will likely see prices recover in the short term, but with over 1 million tons of visible stocks built since the start of 2025 and ongoing surpluses forecast, there is a high risk of a downward price correction.” Sentiment for copper and other growth-dependent metals was supported on Friday by data showing that China’s industrial profits grew 15.2% in the first two months of 2026. Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 12.6% this week to 359,135 tons while the Yangshan copper premium, a gauge of China’s appetite for imported copper, closed the week at $68 a ton after hitting a nine-month high of $69 during the week. Meanwhile, LME aluminium fell 1% to $3,235.50 a ton, having hit $3,299 in the previous session for its highest since March 20. Worries about exports from Gulf region producers, accounting for 9% of global supply, caused concerns over near-term availability of the metal, driving the premium on the cash LME aluminium contract against the three-month forward to $59 a ton, its highest since 2007. Among other LME metals, zinc and lead rose 0.1% to $3,084 and $1,893 respectively while tin gained 2.1% to $44,855 and nickel lost 0.2% to $17,215.

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