Three-month LME copper prices traded in a range of USD 12,988–14,056 per tonne during June. The market started the month on a strong note as uncertainty surrounding U.S. tariff policies continued, leading to tighter copper supply outside the United States. Ongoing peace talks in the Middle East also remained in focus, while concerns over limited supply and Goldman Sachs' higher copper price forecast provided additional support to prices.
In the middle of the month, market sentiment weakened despite the preliminary agreement between the United States and Iran, as geopolitical uncertainties in the Middle East remained. At the same time, the Federal Reserve held its first policy meeting under its new Chair, Kevin Warsh. Although interest rates were left unchanged, the Fed delivered a hawkish message, increasing expectations that rates could be raised later this year. These developments reduced investors' risk appetite and put pressure on copper prices.
Towards the end of June, optimism improved after the United States and Iran signed a peace agreement. Market participants expected the agreement to support trade through the Strait of Hormuz and reduce global inflation risks. However, concerns that future Federal Reserve rate hikes could slow economic growth, together with expectations of new U.S. tariffs, encouraged investors to take profits and reduce their positions. As a result, copper prices gave back most of their earlier gains, and the three-month LME copper price ended June at USD 13,380 per tonne, down 1.70% from the previous month.
