Comex copper traded 4.5% below its September record on Thursday, heading for a third consecutive daily loss as stronger-than-expected United States inflation data reinforced bets on further interest rate hikes.

The decline reflects two converging pressures on the industrial metal: a rising dollar, which makes dollar-priced commodities more expensive for buyers holding other currencies, and easing supply concerns after a labor deal at a Chilean mine reduced the threat of production disruption.

Why is copper falling?

Two forces are pulling the metal lower. First, fresh U.S. inflation figures have hardened expectations that the Federal Reserve will keep raising rates. Higher rates typically dampen economic activity and, with it, demand for copper, a metal whose consumption tracks industrial output closely.

Second, the dollar has climbed on those same rate expectations. Because copper is priced in dollars on the Comex, the New York futures exchange, a stronger greenback mechanically weighs on the price by eroding purchasing power for international buyers.

What eased the supply side?

A labor agreement at a mine in Chile, the world's largest copper-producing country, has removed a source of supply risk that had supported prices. Labor disputes at Chilean mines frequently threaten stoppages, and their resolution tends to relieve the premium traders pay for insured supply.

The combination leaves copper at a discount to its September record. The metal set that all-time high only weeks ago, making the current 4.5% pullback a rapid repricing rather than a slow drift.

What does this mean for the market?

The move illustrates how sensitive copper remains to U.S. monetary policy signals. Traders now watch three variables:

• The trajectory of U.S. inflation and the Federal Reserve's rate path
• The dollar's direction, which inversely pressures dollar-denominated commodities
• Labor stability in Chile, where mine-level disputes can swing global supply expectations

For industrial consumers, a cheaper input offers modest cost relief. For miners, the pullback from the September peak narrows margins that had benefited from record pricing.