Copper Falls as Oyu Tolgoi Exports Resume

Copper futures dropped below $6.4 per pound on Thursday, giving back gains from earlier in the week after Rio Tinto resumed exports of copper concentrate from its giant Oyu Tolgoi mine in Mongolia following a brief protest-related disruption. Oyu Tolgoi is among the world’s largest copper mines and remains central to Rio Tinto’s strategy to increase production of a metal critical to electrification, the energy transition, and growing demand from data centers. Copper also faced pressure after the US Federal Reserve left interest rates unchanged on Wednesday but signaled increasing support for rate hikes later this year. The prospect of higher borrowing costs clouded the outlook for global economic activity and industrial metals demand. Meanwhile, the US and Iran signed an interim peace agreement that is expected to lead to the reopening of the strategically important Strait of Hormuz.