Copper tops US$14,000/t as supply fears and AI demand lift base metals

SEATTLE (Scrap Monster):  Copper surged above US$14,000 per ton while aluminium climbed to its highest level in more than four years as growing concerns over supply constraints and strong demand expectations outweighed ongoing uncertainty surrounding the Middle East conflict.

Base metals have started June strongly, supported by expectations of tightening global supply. Aluminium markets remain under pressure amid concerns over potential disruptions linked to the US-Iran conflict, while copper traders are positioning ahead of a key tariff decision from the Trump administration that could further tighten availability.

Prices have also been buoyed by continued investor interest in commodities tied to artificial intelligence infrastructure and the global energy transition. Tin, a critical material used in electronics soldering, rose 2.3% and traded close to record highs.

HSBC analysts said metals markets were benefiting from both supply-side disruptions and long-term demand trends.

“Metals prices are generally in an upswing, driven by supply disruptions for some commodities due to the Middle East conflict and strong structural demand,” the analysts wrote in a note.

The bank also warned commodities were facing a potential “super-squeeze” while the Strait of Hormuz remains blocked, highlighting risks to global supply chains.

The latest rally follows a series of increasingly bullish forecasts from major investment banks. Goldman Sachs earlier this week lifted its end-of-year copper price forecast by more than 10%, citing tightening market fundamentals.

Meanwhile, Citigroup said last month that aluminium was experiencing its most favourable supply-demand conditions in at least 50 years, pointing to constrained production growth and resilient consumption.

The gains underscore growing confidence that structural demand from electrification, renewable energy and AI-related infrastructure will continue to support industrial metals, even as geopolitical tensions remain elevated.

Courtesy: www.au.finance.yahoo.com