Production setbacks at major Copper mines are raising supply concerns. Indonesia’s Grasberg mine remains closed, and Chile’s El Teniente mine reported a nearly 10% drop in August output, highlighting ongoing disruptions in global Copper supply, Commerzbank's commodity analyst Barbara Lambrecht notes.
"Reports of production outages in the Copper market are increasing: We have already reported on the closure of the world's second-largest Copper mine, the Grasberg mine in Indonesia. With a production capacity of 800,000 tons annually, this translates to a 'theoretical' monthly shortfall of 66,000 tons on the market."
"Now, Chile has also reported disappointing Copper production figures for August, which fell nearly 10%, or 47,000 tons, year-on-year. This was largely due to disruptions at El Teniente, the world's tenth-largest Copper mine, with an annual capacity of around 400,000 tons. While the operator is gradually resuming activities, full operations do not yet appear to have been approved."