Copper Falls for Third Consecutive Session

Copper futures declined toward $6.50 per pound on Thursday, extending losses for a third consecutive session as stronger-than-expected US inflation reinforced expectations of further Federal Reserve rate hikes, dampening the demand outlook for industrial metals. Higher borrowing costs could slow economic growth, potentially weighing on overall copper consumption. However, tightening supply may limit further price declines, as labor strikes and unfavorable weather conditions disrupt mining operations in Chile, the world’s largest copper producer. Worker strikes affected BHP Group’s major Escondida mine and Antofagasta Plc’s Centinela mine, while adverse weather disrupted Codelco’s El Teniente open-pit operations. On the demand side, copper continues to receive support from strong growth prospects in data center infrastructure, semiconductor manufacturing, and battery energy storage systems.

Copper futures rose above $6.70 per pound on Wednesday, moving closer to record highs as labor strikes and adverse weather conditions disrupted mining operations across Chile, the world’s largest copper producer. Workers at BHP Group’s massive Escondida mine are set to begin a strike after union leaders reported that wage negotiations failed to reach an agreement before the midnight deadline. Meanwhile, two unions at Antofagasta Plc’s Centinela mine have also launched strikes. Separately, two workers died on Sunday after an avalanche struck Codelco’s major El Teniente mine, where open-pit operations had already been suspended due to unfavorable weather. On the demand side, rising orders for data centers, semiconductor production, and battery storage systems supporting AI technologies and electric vehicles across Asia continued to bolster the outlook for copper.

Copper futures climbed toward $6.70 per pound, moving closer to record highs as ongoing supply disruptions bolstered prices. In Chile, the world’s leading copper producer, two workers died on Sunday after a snow avalanche struck Codelco’s massive El Teniente mine, where open-pit operations had already been suspended due to adverse weather conditions. Meanwhile, a strike at Antofagasta’s Centinela mine is expected to reduce output from one of the world’s largest copper operations during the second half of October. On the demand front, surging orders linked to data centers, semiconductor development, and battery storage for AI technologies and electric vehicles across Asia continued to strengthen the outlook for copper. The metal also gained support from falling oil prices, which could ease inflationary pressures and reduce the need for aggressive monetary tightening by the US Federal Reserve.