Copper price holds steady amid Grasberg supply risks

[Ben Graham]

Copper prices held steady on Monday as traders continue to assess the impact of a major mine shutdown on global supplies.

Three-month futures traded at above $10,000 per ton ($4.6125 per lb.) on the CME, down 0.3% for the day. In London, the metal traded at just under $10,000/ton, holding onto Friday’s advance.

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The moves follow an announcement by Freeport McMoRan that it will temporarily suspend its Grasberg mine in Indonesia — the second-largest copper producer in the world — following a mud flow incident that trapped seven workers underground two weeks ago.

As of Monday, the bodies of two workers had been recovered. Operations will remain suspended at Grasberg while the search for the remaining workers continues, US-based Freeport has said.

The recent updates signal a potentially extended suspension at the mine, which could quickly tighten the market and exacerbate the long-running supply constraints that have supported prices this year.

Demand for the metal has generally held firm, and Citigroup analysts said last week that prices could head for a cautious close to 2025 before a more concerted move to hit $12,000 next year.

(With files from Bloomberg)