Copper fell for a third consecutive session on Thursday, reaching its lowest level in 10 days as hotter-than-expected U.S. Inflation increased expectations of another Federal Reserve rate increase and a sharp selloff in Asian technology stocks spread into industrial metals.
South Korea’s Kospi dropped almost 8% and entered bear-market territory as investors questioned the durability of artificial-intelligence spending. The resulting decline in memory-chip shares weakened the investment narrative around copper demand, while expectations for higher U.S. Interest rates supported the dollar and added pressure to commodities.
The supply cushion also improved. Supervisors at BHP’s Escondida mine in Chile ratified a labor agreement, removing the immediate threat of a strike at the world’s largest copper mine. Antofagasta Minerals’ Centinela operation remained on strike when the price move began, and Codelco’s El Teniente pit was still closed after a landslide, but those disruptions represented a narrower risk than the roughly 5% of Chilean output previously assessed as vulnerable.
That Centinela dispute was later resolved.
It set 2027 guidance at 630,000 to 690,000 tonnes, a range that reflects higher grades at Los Pelambres partly offset by lower grades at Centinela Concentrates.
LME inventories stood at 228,000 tonnes, down 8% since the start of the month. Cash copper had settled at a $116-per-ton premium to the three-month contract on Wednesday, but the spread narrowed from about $175 on Tuesday, weakening one market signal associated with near-term supply tightness.
Copper producers declined alongside the metal. Freeport-McMoRan fell 2.
The market is also weighing conflicting estimates about future availability. Macquarie calculated a 223,000-tonne surplus for this year and surpluses above 700,000 tonnes annually from 2027, while the International Copper Study Group projected a 368,000-tonne surplus next year. BMO instead argued that almost 2 million tonnes held in the United States represented China’s strategic reserve relocated abroad rather than excess supply, illustrating how tariff policy and stock movements could continue to shape copper pricing.