FX.co ★ Copper Hits 2-Month High

Copper futures surpassed $4.85 per pound on Thursday, reaching a two-month high as the tightening of global supply took precedence over waning industrial demand. According to data, Chile's copper production saw an almost 10% decline year-on-year in August, marking the steepest decrease since 2023. This downturn was prompted by a late-July earthquake that led state-owned Codelco to halt mining and smelting activities at its El Teniente site. Further compounding supply concerns, a mudslide at Indonesia's Grasberg mine removed an estimated 3% of the global supply, with the facility not expected to return to full capacity until early 2027. As a result, operator Freeport-McMoRan has already reduced its 2026 sales forecast by 35%. Additionally, China's initiative to reduce excessive competition and industrial overcapacity is anticipated to slow down the growth of refined copper, with officials predicting an annual output increase for the nation's top 10 non-ferrous metals, including copper, to be a mere 1.5% in 2025 and 2026, significantly less than the previous 5% target.