Copper Falls for 3rd Consecutive Day as Strong US Inflation Data Spurs Broad Selloff

October 15, 2026 – Copper prices declined for a 3rd consecutive session on Thursday as hotter-than-expected United States inflation data triggered a massive broad-based selloff across risk assets.

The industrial metal retreated significantly as the stubborn consumer price index print bolstered expectations that the Federal Reserve will maintain elevated interest rates for longer than previously anticipated.

For macroeconomic allocators, the fundamental shift in monetary policy expectations directly penalizes industrial commodities by driving up the United States dollar and making dollar-denominated raw materials far more expensive for international buyers.

Trading desks observe that benchmark copper futures on the London Metal Exchange dropped approximately 1.5 percent, falling toward 14,500 USD per metric ton as institutional investors actively liquidated long positions.

Inflation Pressures and Dollar Strength

The primary catalyst for the commodity selloff was the latest inflation report, which showed underlying price pressures remaining uncomfortably elevated.

Consequently, the United States dollar index surged to its highest level since May 2025, applying immediate downward pressure across the entire base metals complex.

Quantitative analysts note that a stronger dollar acts as a mechanical headwind for copper, effectively dampening physical demand from key global manufacturing hubs like China and Europe.

Furthermore, surging United States Treasury yields increased the opportunity cost of holding non-yielding industrial assets, forcing asset managers to urgently rebalance their broader commodity portfolios.

Demand Outlook and Inventory Levels

Beyond immediate macroeconomic pressures, physical market indicators are increasingly signaling a softening global demand environment.

Recent data from the London Metal Exchange indicates a steady buildup of copper inventories across registered global warehouses, reflecting sluggish immediate consumption from industrial end-users.

Asset managers emphasize that while the long-term structural demand narrative driven by energy transition infrastructure remains fully intact, the short-term cyclical outlook appears highly vulnerable.

Equity funds project that until clear signals of a sustainable global manufacturing recovery emerge, base metals will remain aggressively tethered to shifting Federal Reserve policy expectations.

Fixed-income desks expect copper to face continued technical resistance in the near term, provided the United States central bank signals any further hawkish maneuvers heading into the final months of 2026.