Copper futures steadied around $5.95 per pound on Wednesday after falling for four consecutive sessions, as supportive long-term fundamentals helped offset near-term pressure stemming from the Iran conflict.

Major technology firms continue to secure agreements that are driving rapid expansion in datacenter construction across key manufacturing hubs, underpinning copper demand given its critical role in electrification and power grid infrastructure.

On the supply side, output from top producer Chile faces growing uncertainty after the Middle East conflict disrupted sulphur shipments to China, prompting China to restrict exports of sulphuric acid, a key input for roughly half of Chile’s copper refining process.

In Indonesia, the Grasberg mine remains underutilized following a fatal mudslide that triggered a force majeure event.

Meanwhile, concerns that the Iran war could weigh on global growth are dampening demand expectations for industrial metals.
Source: Trading Economics