Copper Prices Erase Losses from Middle East Conflict as U.S.-Iran Peace Talks and China Restocking Boost Sentiment

Gate News message, April 15 — Copper prices extended gains on Wednesday (April 14), erasing losses from over six weeks of Middle East conflict as traders assessed prospects for U.S.-Iran peace negotiations. LME copper futures (London Metal Exchange benchmark) rose as much as 0.8% to $13,343.50 per ton, surpassing the February 27 closing price, and stood at $13,286.35 per ton at press time.

Market sentiment improved following last week's temporary ceasefire agreement between the U.S. and Iran, with reports indicating plans for a second round of talks in the coming days. Chinese processors ramped up purchases after domestic copper prices fell below 100,000 yuan per ton due to the conflict, leading to a significant drawdown in inventories. One analyst noted, "Copper prices are recovering. First came China restocking, then inflation concerns eased as peace talks progressed. The worst is over."

Copper demand is increasingly driven by AI data centers, which Morgan Stanley projects will consume 740,000 tons in 2026, contributing 0.6 percentage points to global copper demand growth, and reaching 1 million tons (2.8% of total demand) by 2027. Trafigura analyst Henry Van stated at an industry conference in Santiago that while the energy crisis caused short-term economic impacts, the shift toward electrification could benefit long-term metal growth: "All the big trends driving copper prices higher will now accelerate." Meanwhile, New York copper prices traded at a $283 per ton premium over LME prices this week, the highest since December, as investors await a U.S. Commerce Department decision on refined copper tariffs by late June.