Wedoany.com Report on Mar 7th, The Chilean Copper Commission (Cochilco) released its international market weekly report, showing that the copper price closed at $5.81 per pound this week, down 4.7% from last Friday. Although it retreated on a weekly basis, the metal's annual average price is $5.91 per pound, 42.1% higher than the average price of $4.16 per pound during the same period in 2025.

The report points out that the main factors affecting copper prices are the escalation of conflicts in the Middle East, especially tensions with Iran, which have impacted global financial markets. Rising oil prices and a rebound in U.S. Treasury yields, coupled with the strengthening of the U.S. dollar as a safe-haven asset, have increased the opportunity cost of holding positions in commodities such as copper. Increased market volatility, a retreat in Wall Street stocks, and a rise in the VIX index reflect heightened investor risk aversion.

Another relevant factor is the increase in inventories at major metal exchanges, which reinforces the market's perception of increased immediate copper supply. This week, total inventories reached 1.253 million tons, rising by 58,561 tons weekly, an increase of 4.9%. The inventory growth was primarily led by the Shanghai Futures Exchange, followed by the London Metal Exchange, while COMEX inventories saw a slight decline.

Despite short-term adjustments, the report indicates that the structural fundamentals of the copper market will remain tight in 2026, continuing to support high price levels. However, in the short term, the metal's trend will continue to be constrained by global macroeconomic factors such as inflation, interest rates, and the movement of the U.S. dollar. The market is also closely monitoring the impact of conflicts on maritime routes in the Strait of Hormuz, where shipping disruptions are increasing uncertainty in logistics for supplies to Asia.