Copper set for second monthly advance

Copper futures steadied near $4.85 per pound on Tuesday and were on track for a second consecutive monthly gain as mounting supply risks underpinned prices.

The latest rally followed Freeport-McMoRan’s declaration of force majeure on contracted shipments from Indonesia’s Grasberg mine after a fatal mudslide, with the site accounting for 3% of global copper supply.

The company also warned full output recovery is unlikely before 2027 and cut quarterly copper and gold sales guidance by 4% and 6%, respectively.

Meanwhile, investors monitored China’s push to curb excess competition and overcapacity, which is expected to slow non-ferrous metals production.

Officials projected output of China’s top 10 non-ferrous metals, including copper, to grow only 1.5% annually in 2025 and 2026, far below the prior 5% target.

Still, copper prices remain nearly 20% below the record highs hit in late July at the height of fears surrounding US tariffs on copper imports.