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Copper rallies as peace-talk progress eases inflation fears

Julian Luk / Bloomberg
Julian Luk / Bloomberg • 1 min read
Copper rallies as peace-talk progress eases inflation fears
The war has pushed up energy costs and threatened to dampen manufacturing activity, which is a major driver of industrial metals demand
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(June 22): Copper prices rose after Iran said there had been “major progress” in peace talks with the US, boosting expectations that traffic through the Strait of Hormuz may recover and ease inflation pressures.

The war has pushed up energy costs and threatened to dampen manufacturing activity, which is a major driver of industrial metals demand. Talks between the two sides are set to continue this week in Switzerland and Iran already started shipping out millions of barrels of oil last week.

All metals moved higher on the London Metal Exchange on Monday. Copper prices rose 1.1% to US$13,737.50 a tonne as of 1.05pm local time, with inventory in the exchange’s network dropping to a three-month low.

In other metals, tin gained more than 3%, while nickel and zinc were more than 1% higher.

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