Copper hits more than 16-month high on supply worries
- Three-month copper on the London Metal Exchange was up 0.7% at $10,792 per metric ton
Copper rose to a more than 16-month high on Monday, supported by concerns about supply from top producer Chile and major supplier Indonesia.
Three-month copper on the London Metal Exchange was up 0.7% at $10,792 per metric ton by 0147 GMT, hitting its highest May 2024 and extending gains to a fourth session.
Miner Freeport said on Sunday that five workers who had been missing following a mud flow disaster at the Grasberg copper and gold mine in Indonesia were found dead.
As the world’s second-largest copper mine, Grasberg accounts for 3% of global concentrate production.
Analysts estimate the disruption could result in a loss of 591,000 tons of copper output between September 2025 and the end of 2026, prompting Goldman Sachs, Citi, and Bank of America to raise their price forecasts.
“Bullish momentum in copper continued, with prices spiking to $10,700/t. Investors remained concerned around supply challenges in Chile and Indonesia,” ANZ said in a note.
“Mine supply challenges, along with China’s anti-involution drive, are impacting refined copper production growth.”
Chile’s output fell 9.9% year-on-year in August after an accident at Codelco’s flagship mine on July 31.
Elsewhere, the Trump administration will start mass layoffs of federal workers if US President Donald Trump decides negotiations with congressional Democrats to end a partial government shutdown are “absolutely going nowhere,” a senior White House official said on Sunday.
Among other London metals, aluminium was steady at $2,709 a ton, nickel eased 0.2% to $15,320, lead edged down 0.1% to $2,018.5 and zinc was flat at $3,032.5.
“Aluminium prices also surpassed the $2,700/t mark last week, supported by both supply concerns and strong demand as operating rates improve,” ANZ said.
Chinese markets are closed from October 1 to 8 for the Golden Week holiday.
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