Copper holds gain as production halt at Indonesia mine persists

[SINGAPORE] 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