METALS-Copper falls after Trump threatens more attacks on Iran
SINGAPORE, April 2 (Reuters) - Copper prices fell for the first time in five sessions on Thursday, weighed down by renewed concerns over economic growth after U.S. President Donald Trump vowed more strikes on Iran and gave no specific timeline on ending the conflict.
The benchmark three-month copper on the London Metal Exchange CMCU3 fell 1.06% to $12,305 a metric ton, as of 0708 GMT.
The most-active copper contract on the Shanghai Futures Exchange SCFcv1 closed down 0.68% at 95,880 yuan ($13,921.28) a ton.
Global stocks fell, the dollar firmed, and oil jumped after Trump said Washington's "core strategic objectives" in the Iran war were nearing completion but stopped short of providing a clear outline of when the conflict would end. MKTS/GLOB
"Copper is currently trading more like a macro-sensitive risk asset, moving in line with equities, as sentiment weakens around the macro outlook and geopolitical uncertainty persists," said Alexandre Claude, CEO of DBX Commodities.
Crude oil prices climbed over 5% to above $100 after Trump's announcement, stoking fears of demand destruction as smelters reduce run rates due to power rationing, Claude added.
Commodity markets have started pricing in inflation, interest rate hikes and the potential for a recession, said Ian Hiscock, director at Metal Market Consultants.
"In a risk-off environment, capital moves to safer assets, strengthening the dollar and blunting commodity market price rises," Hiscock added.
Among other metals on the LME, aluminium CAL3 fell 0.85%, zinc CMZN3 slipped 1.49%, lead CMPB3 retreated 0.9%, nickel CMNI3 shed 0.98% and tin CMSN3 softened 3.44%.
Major Chinese copper smelters are planning to raise or maintain output in 2026, their earnings outlooks show, despite a public commitment by the state-linked industry association last year to cut production by over 10%.
China's aluminium exports are also expected to rise sharply, as the Iran war tightens global supply and boosts margins.
On the SHFE, aluminium SAFcv1 retreated 0.52%, zinc SZNcv1 edged up 0.02%%, lead SPBcv1 rose 0.6%, nickel SNIcv1 nudged 0.98% lower and tin SSNcv1 lost 3.05%.
($1 = 6.8873 yuan)
