02.03.202615:27:10UTC+00Copper Drops from 1-Month High

Copper futures in the US declined to $5.90 per pound on Monday, edging down from the near one‑month high of $6.00 reached in the previous session, as the conflict in the Middle East strengthened the US dollar and darkened the outlook for global manufacturing activity. Strikes by US forces killed Iran’s Supreme Leader, prompting Tehran to retaliate with attacks on multiple allied Middle Eastern countries and their energy infrastructure. These developments pushed energy prices higher, thereby supporting the US dollar and Treasury yields and weighing on demand for base metals from major foreign buyers.

Even so, copper prices remained not far from the record high of $6.20 per pound hit at the end of January, as strong speculative interest coincides with tight supply conditions. Market participants expect global copper consumption to rise sharply in the coming years, driven by its critical role in data centers and electrification technologies. At the same time, new mine output is not expected to expand at a comparable pace, reflecting decades of underinvestment in the sector.