Brief
Copper prices slip for third day as US inflation data and Chile supply outlook shift
US consumer‑price data and a settlement at Chile's Escondida mine drove copper to its lowest in ten days.
By Felo News Desk · Published
Copper prices dropped for a third consecutive session on Thursday, Oct 15, after hotter‑than‑expected US inflation data revived expectations of another Federal Reserve rate hike and a settlement at BHP's Escondida mine reduced immediate supply risk, mining.com reported.
What happened
In New York, the COMEX December copper contract fell 1.2% to $6.5810 per pound (about $14,508 per tonne) by late morning, after briefly trading as low as $6.5245. The most‑active contract is now 4.5% below its record settlement of $6.89 set on Sept. 9, marking the longest losing streak since June. In London, three‑month copper eased 0.9% to $14,360 per tonne after touching $14,289, the weakest level since Oct. 5. Cash copper settled at $14,751 on Wednesday, $116 above the three‑month price. LME inventories fell to 228,000 tonnes, an 8% drop since the start of the month. On the Shanghai Futures Exchange, the most‑traded copper contract lost 1.9% to 108,940 yuan ($16,276) per tonne.
What the reports add
Ole Hansen, head of commodity strategy at Saxo Bank, told Reuters that “two things are happening at the same time: the easing worries of supply and the strong inflation report,” adding that the market was “chewing” both factors and profit‑taking was emerging. Kyle Rodda, senior financial market analyst at Capital.com, also told Reuters that copper faces a “double whammy” from a weakening AI trade and rising Fed rate‑hike odds. Sucden Financial wrote in a note that a firm dollar and renewed rate pressure will keep the market defensive, with limited support from remaining supply risks.
What was said
“Two things are happening at the same time: the easing worries of supply and the strong inflation report,” Ole Hansen said to Reuters, as quoted by mining.com.
“For copper, it’s a double whammy of the AI trade coming under pressure from the sell‑off in chip stocks, and the impact of rising Fed rate hike odds,” Kyle Rodda told Reuters, also cited by mining.com.
How it came about
US consumer‑price data for September showed the fastest price acceleration in five months, putting a possible Fed rate hike later in the month back on the table and lifting the Bloomberg Dollar Index to its highest since May 2025. Higher rates typically dampen metals demand and raise inventory‑carrying costs. Meanwhile, supervisors at BHP’s Escondida mine in Chile ratified a union agreement on Wednesday, removing the immediate threat of a stoppage at the world’s largest copper mine. The settlement narrowed the supply‑risk premium that had previously supported prices. However, strikes at Antofagasta’s Centinela mine and a landslide‑induced shutdown at Codelco’s El Teniente pit keep a portion of Chilean output constrained.
Key facts
- COMEX December copper fell 1.2% to $6.5810 per pound on Oct 15 (mining.com)
- Three‑month London copper eased 0.9% to $14,360 per tonne (mining.com)
- US September CPI accelerated to the fastest pace in five months (mining.com)
- BHP's Escondida mine ratified a union agreement, easing immediate supply risk (mining.com)
Sources
- [1] mining.com — originally reported as “Copper price falls for third day as US inflation shock, easing Chile strike risk spur selloff”
