METALS-Copper and aluminium fall as Trump extends deadline for attacks on Iranian energy

By Polina Devitt

LONDON, March 27 (Reuters) - Copper and aluminium prices fell on Friday as U.S. President Donald Trump extended a deadline for striking Iran's energy plants, even though markets appeared sceptical about the chances of a deal being agreed by the two sides.

Benchmark three-month copper CMCU3 on the London Metal Exchange was down 0.3% at $12,115 a metric ton in official open-outcry trading.

Copper, widely used in power and construction, has lost 9% since the U.S.-Israeli war on Iran began on February 28, threatening global economic growth and fanning inflation.

"Prices lack fundamental support and are expected to remain volatile, dominated by macro news and investor flows," Macquarie analysts said in a research note.

"An end to the Iran war will likely see prices recover in the short term, but with over 1 million tons of visible stocks built since the start of 2025 and ongoing surpluses forecast, there is a high risk of a downward price correction."

Sentiment for copper and other growth-dependent metals was supported on Friday by data showing that China's industrial profits grew 15.2% in the first two months of 2026.

Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 12.6% this week to 359,135 tons while the Yangshan copper premium SMM-CUYP-CN, a gauge of China's appetite for imported copper, closed the week at $68 a ton after hitting a nine-month high of $69 during the week.

Meanwhile, LME aluminium CMAL3 lost 0.9% to $3,240 a ton in official activity, having hit $3,299 in the previous session for its highest since March 20.

Worries about exports from Gulf region producers, accounting for 9% of global supply, caused concerns over near-term availability of the metal, driving the premium on the cash LME aluminium contract against the three-month forward CMAL0-3 to $59 a ton, its highest since 2007.

Among other LME metals, zinc CMZN3 was steady at $3,082 a ton, lead CMPB3 lost 0.2% to $1,887 while tin CMSN3 gained 0.9% to $44,500 and nickel CMNI3 was down 0.4% at $17,190.