Copper prices rose as easing Middle East shipping concerns and US monetary policy expectations drove investor sentiment in industrial metals.
Copper climbed back above $13,300 per tonne on Tuesday, supported by reduced fears over disruptions in the Strait of Hormuz and ongoing US-Iran negotiations. The broader industrial metals complex saw mixed movements as investors weighed geopolitical risks against monetary policy expectations.
Aluminium remained under pressure, extending its steepest monthly decline since 2008. Speculative net longs for aluminium, copper, and zinc fell to multi-year lows, reflecting waning geopolitical premia and a stronger US dollar. Copper net longs dropped for a fourth consecutive week to 48,735 lots.
Markets are increasingly focused on the Federal Reserve, with expectations of higher-for-longer US interest rates adding headwinds for metals. The shift in positioning highlights investor caution amid evolving macroeconomic and geopolitical dynamics.