Copper fell for a third day on Thursday as two of the forces that lifted it to near record levels this week reversed at once. London copper closed on Wednesday at $14,436 a ton, down 0.82 percent, after setting an official midday price of $14,741, and SP Angel’s morning note put the metal at $14,303 a ton on Thursday. Comex copper in the site tables fell 0.75 percent to $6.56 a pound.
The first reversal was labour. Supervisors at BHP’s Escondida mine, the world’s largest copper operation, approved a new 36 month contract on Wednesday with 64 percent backing, averting the strike that had been called a day earlier after mediated talks were reported to have failed. The mining beat carries the full labour story. For prices, the settlement removes the largest single stoppage risk supporting the market, though two unions at Antofagasta’s Centinela mine remain on strike after about a week.
The second reversal was macroeconomic. US inflation came in stronger than expected, lifting bets on further Federal Reserve tightening and triggering a broad selloff in base metals and equities. Shanghai Metals Market’s morning summary noted increased short positions in London and reduced long positions in Shanghai overnight, and expected copper to consolidate in a narrow range.
Physical markets are not confirming the futures selloff. Aurubis, Europe’s top producer, has offered a record premium of $347 a ton for 2027 customer supply, a 10 percent increase on this year, according to Benchmark Minerals reporting cited by Bloomberg, and the company said large shipments of metal to the United States ahead of potential tariffs are leaving warehouses elsewhere quite empty. The gap between falling futures and record physical premiums is the tension to watch into LME Week.