Copper prices dropped for the third consecutive day on Thursday, reaching their lowest level in 10 days. The decline was driven by a combination of hotter-than-expected US inflation data, which revived speculation of another Federal Reserve rate hike, and a selloff in Asian chip stocks that spread to the metals market. Additionally, a deal at BHP’s Escondida mine in Chile reduced immediate supply concerns, further pressuring copper prices.
Comex copper for December delivery fell 1.2% to $6.5810 a pound, or about $14,508 a tonne, by late morning in New York. This marked a 4.5% decline from the record high of $6.89 set on September 9. In London, three-month copper eased 0.9% to $14,360 a tonne, while the most-traded contract on the Shanghai Futures Exchange lost 1.9% to 108,940 yuan a tonne.
Analysts noted that the market was grappling with both easing supply worries and the strong inflation report. Ole Hansen, head of commodity strategy at Saxo Bank, said, "Two things are happening at the same time: the easing worries of supply and the strong inflation report. That was too much for the market to chew in one go and some profit-taking is emerging." The technical picture for copper is also deteriorating, with the metal challenging an uptrend that began in March and edging below its 50-day moving average.
The selloff in copper was exacerbated by a broader market downturn, particularly in Asian tech stocks. South Korea’s Kospi fell almost 8%, dropping into a bear market as investors questioned the sustainability of the artificial intelligence spending boom. Kyle Rodda, senior financial market analyst at Capital.com, noted that copper was facing a "double whammy" of pressure from the selloff in chip stocks and rising Fed rate hike odds.
Despite the strike at Antofagasta’s Centinela mine and the shutdown of Codelco’s El Teniente open pit, the overall supply risk in Chile has narrowed. Antofagasta reported a 7% rise in third-quarter copper production but lowered its 2027 output guidance, spooking investors. The selloff also drained the tariff premium in the Comex curve, with the market-implied odds of a 15% import duty arriving in January falling to roughly 2%.
Copper producers mirrored the metal’s decline, with Freeport-McMoRan and Southern Copper each dropping 2.4%, while Antofagasta fell 6.4%. The only major copper producer in positive territory was Teck Resources, which gained 0.5%. Comex copper is still up about 17% in 2026.