Copper prices rise as US-Iran lull calms oil and economic growth fears
FCX•Other base metals mostly firmer
In other metals, aluminium CMAL3 gained 0.6% to $17,385 a ton, zinc CMZN3 rose 0.8% to $3,621, lead CMPB3 was up 0.3% at $1,839 and tin CMSN3 climbed 1.3% to $54,500 while nickel CMNI3 was little changed at $17,385.
Copper rises as oil falls on easing US-Iran tensions
Copper prices rose on Monday as oil prices fell after the U.S. and Iran suspended hostilities, easing concerns about price pressures and global economic growth.
Benchmark copper CMCU3 on the London Metal Exchange was up 0.32% at $13,688.5 a metric ton at 0700 GMT.
Market watches Chile, LME stocks and US tariff review
After 13 nights of intensifying U.S. airstrikes on Iran, the Pentagon suspended the campaign on Friday. Iran, which had been following each night of U.S. attacks with its own strikes on neighbouring countries that host U.S. bases, has held fire for two days.
Oil prices tumbled as the pause in fighting raised hopes of a diplomatic solution that would allow shipping to resume in the Strait of Hormuz.
"The market is now waiting for some sort of resolution and it is trying to price in peace rather than an ongoing war," said Panmure Liberum analyst Tom Price.
“Chile has been hit by unusual storms, putting pressure on the power distribution grid and raising questions about copper production guidance across the industry.”
Chile accounted for 23%, or 5.3 million tons, of mined copper production globally last year, according to U.S. Geological Survey.
Traders said the market was also focused on copper stocks in LME-approved warehouses. At 272,975 tons MCUSTX-TOTAL, stocks have dropped 30% since the end of May.
