Copper hits three-month high on report of longer Grasberg recovery

Copper climbed to three-month high on Friday and was on track for its best week of 2026 after a report pointed to a slight delay in the recovery of production at the Grasberg mine in Indonesia, tightening supply expectations.

Benchmark three-month copper on the London Metal Exchange was up 1.3% to $13,558.50 a metric ton at 0915 GMT. It earlier touched $13,619, the highest since January 29, when the metal spiked to its all-time peak of $14,527.50.

Bloomberg News reported that Freeport-McMoRan is targeting a return to full production at Grasberg by early 2028. The U.S. miner said last month its Indonesian unit was expected to “approach full capacity by the end of 2027”.

Mining engineers “never talk up a rapid recovery”, said Panmure Liberum analyst Tom Price. “But I’ve got to say, it is longer than I expected. I thought it would be coming into the market later this year.”

LME copper was on course for a 4.4% weekly gain, its biggest since the week ended October 3, 2025.

U.S. Comex copper continues to outperform the global benchmark, rising 1.9% to $6.25 per lb, or $13,769 a ton, and heading for a weekly gain of 6.3% amid hopes of a resolution to the conflict in the Gulf.

“My general view on copper is if de-escalation happens, investors will then go back to pre-war themes,” Price said, adding that U.S. investors were buying protection ahead of possible U.S. tariffs on copper.

In China, Shanghai Futures Exchange copper stocks fell 5.6% from last week to 181,333 tons, the lowest since January. ShFE aluminium stocks continued to move in the opposite direction, rising 2% to 492,728 tons, the highest in six years.

LME aluminium gained 0.9% to $3,523.50 a ton as Gulf supply constraints persist, while nickel eased 0.3% to $19,080 after hitting a near two-year peak of $20,000 on Wednesday.

Lead lost 0.6% to $1,969, zinc dipped 0.7% to $3,432 and tin shed 0.7% to $54,205.