FX.co ★ Copper Near 10-Week High on Supply Concerns

Copper futures dipped below $5.10 per pound on Friday as traders engaged in profit-taking. However, prices remained near ten-week highs due to ongoing supply constraints stemming from mine disruptions in Chile and Indonesia. Industry reports revealed that Codelco, Chile's state-owned mining company, produced just 93,400 metric tons of copper in August. This marks its lowest monthly output in over 20 years, reflecting a 25% decline compared to the same period last year. The reduction was partly due to a tragic accident on July 31 at the El Teniente mine, which resulted in six fatalities, nine injuries, and suspended operations for over a week, compelling Codelco to revise its annual forecast downward. Additionally, production at Indonesia's Grasberg mine remains restricted following a fatal accident last month. Freeport-McMoRan, the mine's operator, has indicated that full production capacity may not be restored until early 2027. Moreover, Teck Resources of Canada recently adjusted its annual output projection to 170,000–190,000 metric tons, down from a previous estimate of 210,000–230,000 metric tons.