FX.co ★ Copper Falls for Third Consecutive Session

Copper futures fell toward $6.50 per pound on Thursday, extending losses for a third straight session after stronger-than-expected US inflation data reinforced expectations of further Federal Reserve interest rate hikes, weakening the demand outlook for industrial metals. Higher borrowing costs risk slowing economic growth and could, in turn, curb overall copper consumption.

Even so, tightening supply may limit further price declines, as labor unrest and unfavorable weather continue to disrupt mining operations in Chile, the world’s largest copper producer. Worker strikes have hit BHP Group’s flagship Escondida mine and Antofagasta Plc’s Centinela mine, while adverse weather has disrupted open-pit operations at Codelco’s El Teniente site.

On the demand side, copper remains underpinned by robust growth prospects in data center infrastructure, semiconductor manufacturing, and battery energy storage systems, which together continue to provide structural support for consumption.