Copper price falls, aluminum price climbs as war keeps traders on edge

Bloomberg News | March 26, 2026 | 8:24 am Markets Asia China Europe Middle East USA Aluminum Copper Nickel Zinc

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Copper fell in a mixed session for metals as investors monitored the uncertainty around the US-Iran negotiations to potentially end the war. Aluminum rose, with the ongoing conflict posing a growing risk to supplies in the Middle East.

US President Donald Trump sent conflicting signals on the prospect that talks with Iran would bring a halt to the nearly month-long war, further roiling global energy markets. The conflict, now nearing the one-month mark, has raised concerns about inflation and slowing industrial activity across the world, clouding the demand outlook for metals.

Aluminum prices rose 0.8% on the London Metal Exchange, with traders weighing demand-side impacts against the potential supply turmoil caused by a sustained closure of the Strait of Hormuz, which has already prompted some producers to curtail output. Confusion over the direction and duration of the conflict is keeping some traders on the sidelines.

“I have exited positions on base metals futures,” said Aces Zhou, a Shanghai-based trader at KS Commodities Ltd. “At this price level, I tend to wait for the geopolitical story to be done first and wait for another trading topic.”

Still, investors are monitoring recovering demand in China after copper prices slipped 8% this month due to the Iran war.

“It will be very comfortable for some fabricators to buy at current price level” as the country’s robust exports, especially of power equipment, drive demand, Zhou said.

Copper on the LME settled 1.4% lower at $12,147 a ton, while nickel fell to close down 0.5%, paring gains seen on Wednesday, after the world’s top producer Indonesia approved taxes on exports of the battery metal.

Zinc prices edged higher with traders digesting a larger-than-expected supply disruption at Boliden’s Garpenberg mine in Sweden. The company said it will run the mine at 30% capacity until further notice, following a period of abnormally high seismic activity.