Copper eases after US inflation data; aluminium dips below $3,000
XLB•Copper fell 0.3% to $14,532 a metric ton after reaching a three-week high, as US inflation data revived expectations of a rate hike. Aluminium slipped below $3,000 for the first time since February before trading at $3,001.50.
1. Copper pulls back
Benchmark three-month copper on the London Metal Exchange fell 0.3% to $14,532 a metric ton after earlier reaching $14,700, its highest since September 23. US consumer prices accelerated in September, and the probability of a 25-basis-point rate hike in late October rose to about 44%, according to the CME's FedWatch tool.
2. Supply risks remain
The possibility of a strike at BHP's Escondida mine had supported copper, but the supervisor's union and company representatives reached a preliminary agreement, two sources said. At Centinela, the mine and two striking unions returned to negotiations; Codelco partially suspended operations at El Teniente after a fatal landslide. StoneX analyst Natalie Scott-Gray said supply risks were skewed to the upside and investor bets were keeping prices elevated.
3. Aluminium slips below $3,000
Aluminium fell 1.2% to $3,001.50 after briefly dropping below $3,000 for the first time since February 6, on signs of emerging oversupply. Zinc gained 0.2%, lead was flat, nickel rose 0.2% and tin fell 2.4%.
