Copper futures eased to about $6.55 per pound on Monday, snapping a two-session rally, as stronger-than-expected US employment data reinforced expectations of a Federal Reserve rate hike this month, dampening the demand outlook for industrial metals. Investors also weighed mounting inflation risks after oil prices extended their gains, following reciprocal strikes on ships by the US and Iran over the weekend.
Even so, copper prices held near record highs, supported by persistent supply concerns. Analysts highlighted a recent export ban in Congo, weaker output from major producers Chile and Peru, and disruptions linked to El Niño. Data showed that top producer Chile posted its weakest second-quarter production in at least 19 years. The country also cut its full-year output forecast for a second consecutive quarter and now expects production to fall by 2.6%.
Meanwhile, ongoing uncertainty over tariffs has continued to spur copper shipments into the US, driving Comex inventories to record levels.
