Copper falls as markets await Powell's Jackson Hole speech

Copper prices fell on Thursday in thin summer trading, with markets waiting for the Federal Reserve's annual symposium in Jackson Hole and Fed Chair Jerome Powell's speech on Friday for U.S. interest policy clues.

Benchmark copper on the London Metal Exchange was down 0.3% at $9,690 a metric ton in official open-outcry trading. It touched $9,670.50, its lowest since August 7, on Wednesday.

"The weakness reflects the upcoming Jackson Hole where the speeches will be important. Some risk aversion is also starting to break in, visible in a decline in tech stocks," said Dan Smith at Commodity Market Analytics.

Odds of a rate cut by the Fed next month eased slightly to 79%, offering mild support to the dollar as focus remained on whether Powell will push back against market expectations for a September cut.

A stronger U.S. currency makes dollar-priced metals more expensive for buyers using other currencies, while rate expectations are important for overall sentiment towards industrial metals as demand for them depends on economic growth.

Providing some support to metals markets was Thursday's data showing that euro zone businesses saw new orders increase in August for the first time since May 2024, helping overall activity expand at the fastest pace in 15 months.

More underpinning came from the supply side as Chilean copper giant Codelco said it would lower its 2025 production guidance after an accident at its flagship El Teniente mine knocked 33,000 tons off the facility's output. Codelco in March said it aimed for 2025 production between 1.37 million and 1.4 million tons.

In other metals, aluminium fell 0.2% to $2,571 a ton in official activity, zinc lost 0.7% to $2,768.5, lead dropped 0.6% to $1,969.5, tin shed 0.6% to $33,450 and nickel was down 0.4% at $14,950.