Copper futures fell below $6.40 per pound on Thursday, erasing gains from earlier in the week after Rio Tinto resumed exports of copper concentrate from its massive Oyu Tolgoi mine in Mongolia, following a brief disruption caused by protests. Oyu Tolgoi, one of the world’s largest copper deposits, remains central to Rio Tinto’s strategy to ramp up output of a metal that is crucial for electrification, the energy transition, and rising demand from data centers.
The market also came under pressure after the US Federal Reserve left interest rates unchanged on Wednesday but signaled growing support for potential rate hikes later this year. The prospect of higher borrowing costs has dimmed the outlook for global economic activity and demand for industrial metals such as copper.
At the same time, sentiment was influenced by geopolitical developments, as the United States and Iran signed an interim peace agreement that is expected to pave the way for reopening the strategically vital Strait of Hormuz.
