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Dollar firms as copper falls from 16-month high

The copper price fell on Monday, after reaching a 16-month high in the previous session. A stronger dollar countered support from supply concerns from Chile, the top producer and Indonesia as a major supplier.

The price of three-month copper at the London Metal Exchange dropped 0.4%, to $10,666.50 a metric ton, as of 0726 GMT. It had previously reached its highest level since May 2024 earlier in the day.

The U.S. Dollar Index rose by 0.4%, reaching a record high of more than a week against its competitors. A stronger dollar makes greenback-denominated assets more expensive for holders of other currencies.

Freeport Miner said that five workers who had been missing following a mudslide disaster at the Grasberg Copper and Gold Mine in Indonesia were found dead on Sunday.

Grasberg, the second largest copper mine in the world, accounts for 3% global concentrate production.

Analysts have estimated that the disruption will result in a loss of 591,00 tons of copper production between September 2025 to 2026. This has prompted Goldman Sachs and Citi to increase their price predictions.

Prices soared to $10,700/t, continuing the bullish trend in copper. Investors remained worried about supply issues in Chile and Indonesia," ANZ stated.

The growth of refined copper production is being affected by the mine supply issues, as well as China's antiinvolution drive.

After an accident on July 31, the production of Chile fell by 9.9% in August compared to last year.

Other London metals include aluminium, which fell by 0.3% to 2,701.50 per ton. Nickel also declined, falling 0.2% to $16,395. Lead fell by 0.5% to $2,000, while tin dropped 2% to $35,715; and zinc, which lost 0.6% to 3,017.

"Aluminium also exceeded the $2,700/t marker last week. This was supported both by supply concerns and a strong demand, as operating rates improved," ANZ stated.

Golden Week, which runs from October 1 through October 8, is a time when Chinese markets will be closed.

Click here to see the latest news in metals, and other topics. (Reporting and editing by Sumana Jacob-Phillips, Subhranshu Shu, and Brijesh Pattel, Bengaluru)

(source: Reuters)