LONDON: Copper prices rose on Monday, supported by a weaker dollar and concerns over global supply after an accident at the world’s second-largest mine.
Benchmark three-month copper on the London Metal Exchange added 2.2percent to USD10,400 a metric ton by 1508 GMT. The metal is up 5percent this month after hitting a 15-month high of USD10,485 on Thursday as analysts lowered supply forecasts for 2025 and 2026 after disruption at the Grasberg mine in Indonesia.
“We remain supportive on copper price prospects following the tightening of the copper concentrate market on the disruption and force majeure at Grasberg,” said Standard Chartered analyst Sudakshina Unnikrishnan. The Grasberg minerals district suspended operations on September 8 after a deadly mud slide at the biggest of its three underground mines.
Concerns over a potential US government shutdown should Congress fail to pass a funding bill before the fiscal year ends on Tuesday pressured the dollar, making dollar-priced metals more attractive for buyers using other currencies. Top metals consumer China said that it was targeting average production growth in non-ferrous metals of about 1.5 percent this year and next. For 2023 and 2024 the targeted average production growth was 5percent.
China’s industrial profits returned to growth in August, but factory activity probably shrank for a sixth straight month in September, a survey of economists showed. Official purchasing managers’ index data is due on Tuesday.
Among other LME metals, tin gained 2.9 percent to USD35,495 a ton after hitting USD35,510, its highest since April 4, after a report by Xinhua news agency that Indonesia ordered the closure of around 1,000 illegal tin mines in a key producing region. LME aluminium rose 0.9 percent to USD2,679.50, zinc added 1.5 percent to USD2,932, lead lost 0.3 percent to USD1,996.50, and nickel was up 1.0 percent at USD15,315.