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Copper prices fall, heading for a weekly drop as tensions in the Middle East weigh on demand

The price of copper fell on Friday as equity markets declined. Rising tensions in the Middle East war fueled inflation fears and cast a dark shadow over the outlook for industrial metals.

Benchmark 'three-month copper' on the London?Metal Exchange fell 1.3% to $13,419.50 per metric ton at 0930 GMT after rising 0.1% on Friday. The metal, which is widely used in construction, manufacturing and power generation, was expected to finish the week at a loss of 0.5%.

Oil prices have risen 12.7% this week due to the escalation of fighting between the U.S. and Iran. Fuel costs are also increasing for metal producers.

U.S. Stock Market Futures also slid due to renewed attacks in Gulf and a drop in chip stocks. Meanwhile, President Donald Trump's claims that China "meddled" in U.S. Elections increased trade tensions between two of the world's largest economies.

COMEX copper fell by a more pronounced 1.9%, to $6.22 a pound. The White House has yet to announce its proposed tariff on imported refined copper.

The US-Iran war has had a relatively mild impact on supply, but we still see copper prices falling in the months to come, according to BMI, an Fitch Solutions unit.

Tight inventories kept prices at a minimum. LME copper stock The number of cancelled warrants on the market has dropped to 56%, which is the lowest level since March.

Exchange copper stocks in China: Shanghai Futures The Yangshan premium fell by 20.3% compared to last week, reaching?79.909 tonnes, the lowest level since August. The Yangshan Premium On Thursday, the remained at $95 per ton, its highest level since May 2025.

Other metals like aluminium, zinc, and lead also fell. Lead dropped 0.2%, to $1,868.50, while tin lost 1.4%, to $52,250. (Reporting and additional reporting by Solomon Cefai, Editing by Janane Vekatraman and Eileen Soreng).

(source: Reuters)