Copper prices are holding near record highs, hovering just below $US11,000 a tonne, fueled by concerns over potential supply disruptions. The metal, essential for various applications including pipes, wires, and batteries, has seen a strong rally this year, climbing approximately 25% since recovering from a sell-off in April. This initial downturn was sparked by trade war escalations.
Recently, supply-side challenges have intensified, capturing investor attention. A significant factor is the suspension of operations at Freeport-McMoRan’s Grasberg mine in Indonesia following a fatal mudslide. Freeport-McMoRan is a leading international mining company, and Grasberg is the world’s second-largest copper mine. Freeport has announced that the Grasberg mine remains halted and further updates will be provided to investors next month.
In London trading, three-month copper futures rose by 1%, settling at $US10,962.50 a tonne. These gains reflect the ongoing anxieties about copper availability amid rising global demand. While other metals also experienced price fluctuations, aluminum briefly reached its highest level since May 2022 before retracting to trade slightly lower.
