LME base metals rally on US-Iran deal hopes, aluminum falls $32

Metal	Change	Settle
Tin	+$892	$54,185
Nickel	+$174	$17,754
Copper	+$54	$13,649
Zinc	+$52	$3,608
Lead	+$10	$1,964
Aluminum	-$32	$3,364

LME base metals rallied broadly Monday, led by tin up $892 and nickel up $174, as hopes of a US-Iran diplomatic agreement boosted industrial demand expectations.

Iran's foreign minister said new talks on nuclear arms and sanctions relief would start on Friday, right after an initial agreement is signed, according to a statement.

LME copper settled at $13,649/tonne, up $54. Zinc added $52 to $3,608/tonne, while lead gained $10 to $1,964/tonne. Cobalt was unchanged at $56,290/tonne. Aluminum fell $32 to $3,364/tonne, the only metal to decline, as traders weighed potential easing of supply constraints tied to sanctions.

A US-Iran deal could lift sanctions on Iranian oil and metals exports, improving global trade flows and industrial demand. The next catalyst is Friday's formal talks in Switzerland, with traders watching for concrete progress on sanctions relief.

The rally extended across the LME complex, with tin posting the largest absolute gain at $892, settling at $54,185/tonne. Nickel rose $174 to $17,754/tonne, supported by demand expectations from the stainless steel and EV battery supply chains.

Gold also advanced Monday as investors tracked the US-Iran negotiations in Switzerland, according to market data. The US Dollar Index gained support as renewed concerns over the deal's implications for inflation and interest rates kept the dollar elevated, creating a headwind for some commodities.

LME warehouse data will be watched this week for inventory moves that could confirm or contradict the demand narrative. Copper stocks on the LME stood at levels that traders said could tighten quickly if Chinese buying picks up alongside a diplomatic breakthrough.

This article is for informational purposes only and does not constitute investment advice.