FCX Sinks 7% as Copper Retreats From Record…

Freeport-McMoRan tumbled 7% and Southern Copper dropped 8.8% as copper retreated from its $14,694 per ton record, triggering sector-wide profit-taking that partially reversed miners' remarkable 2026 gains.

Copper set an all-time high of $14,694 per metric ton on September 8 before pulling back sharply on tariff uncertainty
FCX fell 7% and Southern Copper (SCCO) lost 8.8% as profit-taking swept the copper mining sector on September 10
The broader S&P 500 declined just 0.7% on the same session, confirming the selloff as sector-specific rather than systemic

Lead

A record copper price proved too rich to hold. Freeport-McMoRan (FCX) shares slid 7% on September 10 as copper pulled back from its all-time high of $14,694 per metric ton set just two days earlier on September 8, setting off a wave of profit-taking that dragged the copper mining complex sharply lower and partially unwound one of the most powerful commodity-driven equity rallies of the year.

Market Reaction

The selloff was swift and broad. Southern Copper (SCCO) shed 8.8%, Teck Resources (TECK) fell 7%, and the Global X Copper Miners ETF (COPX) lost 7% in a single session. London Metal Exchange three-month copper settled near $14,312 per metric ton after briefly spiking to $14,875 intraday - a near-instant reversal that compressed what had been five consecutive sessions of gains. The broader equity market barely registered the move, with the S&P 500 slipping just 0.7%, underscoring that the repricing was concentrated in copper and its proxies rather than a reflection of wider market stress. In the stock market today, copper names stood out as the clearest sector-specific shock.

What Triggered the Copper Selloff?

White House uncertainty over the scope and timing of refined copper tariffs destabilized the market. Officials are weighing how elevated copper prices would feed into domestic manufacturing costs, and with no formal decision announced, the market - which had priced in tariff protection as near-certain - moved to reduce exposure. The policy ambiguity was enough to prompt institutional investors to lock in gains accumulated over weeks of uninterrupted price appreciation. The fact that copper had surged from below $12,000 per ton at the start of 2026 to a new record above $14,694 in just eight months left a large pool of open profit available for harvesting.

Why Did FCX Fall So Sharply?

Freeport-McMoRan's earnings are among the most copper-sensitive in the mining industry. Each 10-cent movement in the copper price translates into approximately $390 million in annual EBITDA, a leverage profile that amplifies swings in both directions. Management has projected EBITDA ranging from $13 billion at $5 per pound copper to $20 billion at $7 per pound through 2027-2028, illustrating just how directly the stock tracks the metal. FCX had surged 44% year-to-date through September 8, a rally that embedded considerable optimism about sustained high copper prices and left the stock exposed once the commodity reversed. The September 10 decline pared that advance to roughly 40%, still exceptional by broad-market standards but a sobering reminder of how quickly commodity-leveraged equities can correct.

Supply Drivers That Powered the Record

The multiyear copper rally rests on genuine structural tightness, not speculation alone. Chile, the world's dominant copper producer, reported its weakest second-quarter output in at least 19 years and cut its full-year production forecast for a second consecutive quarter, projecting a 2.6% annual decline. Analysts now project global copper mine supply remaining broadly flat or edging lower - which would mark the first annual decline since 2017. Simultaneously, US-bound copper shipments accelerated sharply ahead of potential tariffs, pulling inventories lower and adding near-term price pressure atop the longer-cycle supply deficit. Data-center construction, renewable energy infrastructure, and grid upgrades are absorbing copper at a rate that mine expansions have struggled to match.

What Comes Next for Copper Prices?

Consensus price targets for FCX cluster near current post-selloff trading levels, suggesting the market views the stock as fairly priced relative to the clouded tariff outlook. Analysts had projected copper reaching $15,000 per ton by year-end, with a potential run toward $17,000 under a scenario combining manufacturing recovery and accelerating energy transition demand. Whether either scenario materializes now hinges substantially on Washington's next policy move. A confirmed tariff on refined copper imports would likely reignite the rally; a formal decision to exempt refined copper from new duties would expose prices to a deeper retracement.

Outlook

The September 10 pullback trims but does not erase one of the strongest runs in the copper mining sector in years. FCX, SCCO, and TECK remain substantially higher for 2026, supported by supply constraints that are unlikely to ease quickly given the multi-year lead times associated with new mine development. The structural investment thesis for copper - electrification, AI infrastructure buildout, and green energy transition - remains intact. Near-term price action, however, will be driven by tariff policy signals from Washington and the pace at which industrial demand absorbs a market that had, until September 8, been reaching unprecedented levels.