Copper falls after US inflation data; aluminium hits lowest this year
XLB•Copper fell 0.6% to $14,484.50 a metric ton as US inflation data lifted the dollar and put a rate hike this month back on traders’ radar. Aluminium dropped 1.7% to $2,986.50, its lowest since December 31, on signs of emerging oversupply.
1. Copper and dollar
Benchmark three-month copper was down 0.6% at $14,484.50 a metric ton at 1600 GMT, after reaching $14,700 earlier in the session, its highest since September 23. US consumer prices accelerated last month amid a surge in gasoline costs, prompting traders to reassess Federal Reserve policy and sending the dollar to an 18-month high. The CME FedWatch tool showed a 41.5% probability of a rate hike in late October.
2. Mine supply and outlook
A possible strike at BHP’s Escondida mine had supported copper, but the supervisor’s union and company representatives reached a preliminary agreement, two sources said. Chile’s Centinela mine and two striking unions returned to negotiations, while Codelco partially suspended operations at El Teniente after a fatal landslide. The International Copper Study Group forecasts a refined copper surplus of about 104,000 tons in 2026, widening to 368,000 tons next year.
3. Other metals weaken
Aluminium fell 1.7% to $2,986.50 after touching $2,978, its lowest since December 31, on signs of emerging oversupply. Zinc fell 0.4%, lead and nickel each lost 0.2%, and tin dropped 3%.
