FX.co ★ Copper Finds Support on Supply Concerns

Copper futures have stabilized at approximately $5 per pound as of Thursday, positioning them to maintain a steady course for the week due to persistent supply concerns. In a tragic incident, over 30 individuals lost their lives at a semi-industrial copper mine in Congo when a bridge collapsed, which has sparked investigations regarding military involvement following reports of altercations between miners and soldiers. Additionally, Freeport-McMoRan has announced its intention to resume production at Indonesia’s Grasberg mine by July 2026, following a suspension that started in September due to a catastrophic inundation of wet mud that resulted in seven fatalities. Despite these factors supporting copper prices, they might encounter challenges as recent Federal Reserve meeting minutes expose differences among policymakers concerning further interest rate cuts. This has led traders to adjust their anticipations for a December rate adjustment, with current market sentiment suggesting about a 33% probability of a 25 basis point reduction next month, a significant decrease from the over 90% likelihood anticipated just a month ago.