Copper rises on upbeat China data, supply concerns after Freeport delay
- Benchmark three-month copper on the LME was up 0.23% at $13,604 a metric ton
Copper prices edged higher on Monday, supported by stronger-than-expected inflation data from top consumer China and supply concerns after Freeport delayed a full recovery of its Grasberg mine in Indonesia.
The benchmark three-month copper on the London Metal Exchange was up 0.23% at $13,604 a metric ton, as of 0714 GMT, after reaching a three-month high of $13,643.
The most-traded copper contract on the Shanghai Futures Exchange closed daytime trading 0.94% higher at 104,620 yuan ($15,396.39) a ton, after hitting a three-month high of 104,840 yuan.
China’s consumer prices rose 1.2% in April from a year earlier, beating expectations for a 0.9% increase, while factory-gate prices jumped 2.8%, also above estimates and hitting a 45-month high, according to National Bureau of Statistics data.
The data supported sentiment towards industrial metals, although traders said the rise in factory-gate prices was driven largely by higher energy and raw material costs rather than a clear rebound in domestic demand.
Copper holds steady, supported by US-Iran peace proposal
Elevated energy costs due to the Iran conflict remained a pressure point for copper, with Brent crude holding above $104 a barrel after U.S. President Donald Trump swiftly rejected Iran’s response to a U.S. peace deal.
Copper was also supported by supply concerns after Freeport delayed the full resumption of its flagship Grasberg mine to early 2028, from previous expectation of a return to full capacity by 2027.
The mine is currently operating at about 40%-50% capacity as it still recovers from a fatal mudflow last September.
The delay adds pressure to an already tight copper concentrate market, where mine disruptions have squeezed smelter treatment charges and kept supply risk high.
Sentiment was also supported by Trump’s scheduled visit to China this week.
Among other base metals on the LME, aluminium gained 0.57%, zinc dropped 0.45%, lead added 0.05%, nickel climbed 0.86% and tin gained 0.97%.
Elsewhere on SHFE, aluminium rose 0.43%, zinc declined 0.97%, lead dipped 0.33%, nickel added 0.39% and tin lost 0.69%.
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