Prices for aluminum and copper rose on Tuesday, with aluminum on track for its highest closing level in four years, as cautious optimism over a potential U.S.-Iran peace agreement bolstered the demand outlook for base metals.
As of the latest update, copper on the London Metal Exchange advanced 0.4% to $13,690 per ton, while aluminum gained 0.38% to $3,686 per ton, the latter potentially setting a four-year closing record. Iron ore futures on the Singapore Exchange were largely flat at $105.10 per ton.
Negotiations to extend a ceasefire and reopen the Strait of Hormuz are progressing, though finalizing the agreement's wording is reported to still require several days. Despite recent attacks on vessels and infrastructure in the Persian Gulf region, the ceasefire has largely held since early April.
Over the past two weeks, metal prices have steadily climbed as the U.S. and Iran moved closer to a deal, easing market concerns that prolonged global economic pressure would dampen demand for industrial metals. Copper has received an additional boost from investment enthusiasm in assets related to artificial intelligence infrastructure.
The Strait of Hormuz is a critical global passage for commodity shipping, and any disruption directly impacts supply expectations for raw materials. Beyond geopolitical factors, copper's rise is also fueled by the investment surge in AI infrastructure. As a core material for power transmission and data center construction, copper is closely tied to market sentiment around AI-related assets, providing structural support for its price independent of broader macroeconomic conditions.
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