Copper Prices Expected to Decline Amid Middle East Conflict

Copper prices are projected to decrease by 2.7% this week due to the ongoing Middle East conflict, which may impact global economic conditions and demand. According to Jin10, analysts from Commerzbank noted that copper prices have already fallen by approximately 5% from their mid-May peak. This decline is primarily attributed to increased risk aversion driven by rising oil prices. Despite this, market fundamentals remain supportive. Chile has lowered its copper production forecast due to lower ore grades and operational issues, while the resumption of operations at Indonesia's Grasberg mine is progressing slower than anticipated.