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24.09.202603:48:27UTC+00Copper Pulls Back From Record High

Copper futures fell below $6.70 per pound on Thursday, pulling back from record highs as a stronger US dollar, bolstered by solid US economic data, reinforced expectations of further Federal Reserve rate hikes. A firmer dollar makes dollar-denominated commodities such as copper more expensive for overseas buyers, weighing on prices.

Even so, copper remains underpinned by persistent supply risks. BHP Group reported a suspension of operations at the giant Escondida mine in Chile following a worker’s death. In addition, metals trader Sprott Asset Management warned that global mined copper production could decline this year for the first time since 2017. Disruptions at major mines in Indonesia and the Democratic Republic of Congo have already reduced projected annual output by an estimated 600,000 tons.

On the demand side, consumption remains solid, driven by power grid expansion, AI data centers, and defense applications. The recent rally in technology and AI stocks has further improved the demand outlook for the metal.

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