en.Wedoany.com Reported - Copper prices have climbed above $14,000 per metric ton, while aluminum has risen to its highest level in over four years, as base metals started June on a strong footing, buoyed by expectations of tightening supply and bets on assets linked to artificial intelligence and the energy transition.
Market optimism has overshadowed concerns over the unresolved conflict in the Middle East. U.S. efforts to resolve a dispute with Iran have put pressure on aluminum supply, while copper traders await key tariff decisions from the Trump administration. Tin, used in electronic soldering, rose 2.3%, nearing record highs.
Analysts at HSBC Holdings Plc noted in a report that the broad-based rally in metal prices is driven by supply disruptions of some commodities due to the Middle East conflict and strong structural demand. With the Strait of Hormuz still blocked, commodities are facing a "super squeeze" phase.
Several investment banks have also issued a flurry of bullish calls. Goldman Sachs Group Inc. raised its year-end copper price forecast by over 10% this week. Citigroup Inc. said last month that aluminum is facing its most bullish supply-demand situation in at least half a century. On Tuesday, spot aluminum contracts traded at a premium of up to $116.50 per metric ton over three-month futures, the widest since 2007, before the spread narrowed to $98.09 per ton, signaling tightness in immediate supply.
Investors continue to monitor the latest developments in the Middle East. After Iran threatened to suspend negotiations following Israel's escalation of attacks on Lebanon, U.S. President Donald Trump remains optimistic about reaching an interim peace deal with Iran soon. The ongoing conflict has intensified questions about the outlook for aluminum supply from the region, which accounted for about one-tenth of global aluminum production before the conflict. If the flow of sulfuric acid from the Middle East remains constrained, some copper output could also face slowdown risks.
Aluminum on the London Metal Exchange rose 1% to close at $3,752.50 per metric ton, bringing its year-to-date gain to over 25%. Copper on the London Metal Exchange rose 1.5% to close at $14,040.50 per metric ton. Copper futures on New York's Comex rose 1.9% to close at $6.6765 per pound.
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