Copper Rises From One-Month Low on Concern Over Mine SupplyJae Hur
Copper climbed for the first time in six days, rebounding from a one-month low on concern that a disruption at Freeport-McMoRan Copper & Gold Inc.’s Grasberg mine will cut output.
Metal for delivery in three months on the London Metal Exchange traded between as high as $7,087 a metric ton and as low as $7,020, and was little changed at $7,067 at 12:09 p.m. in Tokyo. Futures for delivery in July on the Comex fell 0.2 percent to $3.1885 a pound.
Freeport may need to declare force majeure on shipments from Grasberg if the world’s second-largest copper mine stays shut for too long, Rozik B. Soetjipto, the president director of the company’s Indonesian unit, said earlier this week. Force majeure is a legal clause allowing companies to miss deliveries because of circumstances beyond their control.
“Supply concerns provided a floor for copper and we’ve seen continued buying interest above $7,000,” said Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul.
Operations at Grasberg are shut, except for maintenance, until the government gets the results of an independent probe of an accident at a tunnel that killed 28 people on May 14, the Energy and Mineral Resources Ministry said June 5. Another worker died on June 1 after a separate incident. The halt may cut output by about 680 tons a day, Bloomberg calculations show.
On the LME, nickel sank to the lowest since July 2009, retreating for a sixth day to $14,499 a ton after data from the bourse showed yesterday stockpiles monitored by LME rose to a record. Lead and tin also fell, while aluminum and zinc climbed.
The Shanghai Futures Exchange is closed today for the Dragon Boat Festival holiday.