FX.co ★ Copper Holds Advance on Tighter Supply

Copper futures remained stable near $4.8 per pound on Wednesday, approaching two-month highs, as supply concerns bolstered prices. The situation has been exacerbated by a mudslide at Indonesia's Grasberg mine, which, according to ANZ Research strategists Brian Martin and Daniel Hynes, has led to the removal of an estimated 3% of global supply from the market. The mine is anticipated to return to full capacity only by early 2027, leading Freeport-McMoRan to slash its 2026 sales projections by 35%. Additionally, China's initiatives to reduce excessive competition and overcapacity are expected to impact refined copper production. Officials foresee output growth for the nation’s top 10 non-ferrous metals, including copper, to be a mere 1.5% annually for 2025 and 2026, significantly lower than the prior 5% target.