Copper hits two-month high

Copper futures rose above $4.85 per pound on Thursday, reaching a two-month peak as tightening global supply overshadowed sluggish industrial demand.

Data showed Chile’s copper output nearly 10% year-on-year in August, the steepest drop since 2023, after a late-July earthquake forced state-owned Codelco to suspend mining and smelting at its El Teniente site.

Supply risks deepened after a mudslide at Indonesia’s Grasberg mine removed an estimated 3% of global supply, with the facility unlikely to return to full capacity until early 2027.

Operator Freeport-McMoRan has already cut its 2026 sales guidance by 35%.

Adding to the squeeze, China’s push to curb excess competition and industrial overcapacity is expected to slow refined copper growth, with officials forecasting annual output expansion for the nation’s top 10 non-ferrous metals, including copper, at just 1.5% in 2025 and 2026, well below the previous 5% target.