Study Group Offers Insights on the Conflicting Signals within Copper Markets
Following January’s surge to record highs, copper prices have entered a more cautious phase, reacting closely to developments surrounding the Iran crisis. The ongoing closure of the Strait of Hormuz presents a paradox for the market, creating both upward and downward pressure on prices. On one hand, the Gulf region is a key supplier of sulfur, a critical input for producing sulfuric acid used in copper extraction processes such as solvent extraction and electrowinning, which account for roughly a quarter of global refined output. Any disruption in supply supports higher prices. On the other hand, rising energy costs linked to the crisis threaten to slow global manufacturing, weakening…
