METALS-Copper rises to two-week highs on hopes for end to Iran war
April 1 (Reuters) - Copper rose to two-week highs on Wednesday, supported by optimism that the end of the Iran war could be near, easing concerns over global growth and inflation, while a weaker U.S. dollar added support.
The benchmark three-month copper on the London Metal Exchange CMCU3 was up 0.85% at $12,440.50 a metric ton as of 0754 GMT after hitting $12,492.50, the highest since March 18.
The most-active copper contract on the Shanghai Futures Exchange SCFcv1 gained 1.54% to 97,030 yuan ($14,093.57) a ton, following a rise to 97,250 yuan - the highest since March 19.
President Donald Trump said on Tuesday that the United States could wind down the conflict in two to three weeks even without a deal with Tehran.
Trump is expected to address the nation "to provide an important update on Iran" at 9 p.m. EDT on Wednesday (0100 GMT on Thursday).
His comments provided some relief as copper is considered a barometer of macroeconomic health and widely used in power and construction. The metal recently came under pressure as surging oil prices caused by the war dampened the global growth outlook and stoked inflation fears.
London copper declined 7.55% in March, its worst month since June 2022, after the U.S.-Israeli attack on Iran.
The U.S. dollar =USD weakened on Wednesday, making greenback-backed commodities more affordable for investors using other currencies.
Meanwhile, demand in China continued to show signs of recovery, with stocks monitored by the SHFE CU-STX-SGH declining for a second consecutive week to 359,135 tons as of March 27, according to the exchange's weekly stock data.
On the LME, aluminium CAL3 dropped 0.42%, zinc CMZN3 was little changed, down only 0.06%, lead CMPB3 gained 0.94%, nickel CMNI3 declined 0.80% and tin CMSN3 climbed 1.61%.
Among other metals on the SHFE, aluminium SAFcv1 lost 1.10%, zinc SZNcv1 declined 0.98%, lead SPBcv1 rose 0.79%, nickel SNIcv1 nudged 0.03% higher and tin SSNcv1 rose 1.23%.
($1 = 6.8847 Chinese yuan renminbi)
