Quick overview

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Copper reached its highest level in over a month, and other industrial metals mostly rose on hopes that peace negotiations between the US and Iran would resume.

 

 

President Donald Trump claimed that Tehran had contacted his administration about possible peace negotiations while the US launched a naval blockade of the Strait of Hormuz.

Iran has opened the door to more talks, but given the risk of escalation, investors remain cautious amid renewed volatility.

Since the Middle East conflict broke out at the end of February, industrial metals have been whipsawed. Fears of skyrocketing energy prices and the effect on economic expansion initially plagued them, but they eventually recovered somewhat due to indications that the conflict might be coming to an end.

Aluminum surged to a four-year high this week due to additional supply disruptions brought on by the US blockade. Approximately 9% of the metal produced worldwide comes from the Middle East.

In the meantime, Chile’s top mining official stated in an interview that the country’s new government wants to increase copper production more quickly than previously anticipated by expediting permits and changing regulations.

According to the dual Economy and Mining Minister Daniel Mas, the administration of President José Antonio Kast anticipates that the metal’s yearly production will reach 6 million metric tons in the next four or five years. From 5.6 million tons this year, the country’s copper commission, Cochilco, had predicted that it would take until 2033 to reach that level. From his downtown Santiago office, Mas stated, “We are trying to increase investment to assure the expansion of some mines.”

The government wants more production from a combination of large and medium-sized mines, he continued.