Copper holds gain as production halt at Indonesia mine persists

The latest report signals there may be a prolonged suspension at the mine that could quickly tighten the market

Copper held gains from the previous session, as traders weighed the impact on global supplies from an accident in Indonesia that’s left the world’s second-largest mine suspended for two weeks.

Prices for the industrial metal rose above US$10,000 a tonne on the London Metal Exchange on Monday (Sep 22) before easing back. The bodies of two workers had been recovered at Freeport McMoRan’s Grasberg mine, according to a local report on Sunday.

Freeport’s local unit did not immediately respond to Bloomberg inquiries. Meanwhile, five other workers remain missing following a mud flow incident on Sep 8, with search operations ongoing.

The latest report signals there may be a prolonged suspension at the mine that could quickly tighten the market, exacerbating long-running supply constraints that have supported prices this year. Demand for the wiring metal has generally held firm, and Citigroup analysts said last week prices could head for a cautious close to 2025 before a more concerted move to hit US$12,000 a tonne next year.

Copper was little changed at US$9,994 a tonne as at 10.29 am Singapore time. Most other metals rose, with aluminium up 0.3 per cent.

Meanwhile, iron ore gained 0.4 per cent to US$106.95 a tonne in Singapore. Yuan-priced futures in Dalian rose, along with steel contracts in Shanghai. BLOOMBERG