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Copper prices are impacted by profit-taking and the start of the long holiday in China

The price of copper fell on Tuesday, as the start of a holiday week in China's top metals-consuming country coincided with the close of the third-quarter. This prompted profit-taking following the prices reaching their 15-month-high last week.

The benchmark three-month price of copper at the London Metal Exchange dropped 0.6%, to $10 347.50 per metric ton as of 0948 GMT.

After the disruption of the Grasberg Mine in Indonesia this month, many analysts have lowered their estimates for 2025 and 2026.

Copper prices rose to a 15-month-high of $10,485 Thursday on the prospect of reduced supply from Grasberg. The discount between the LME cash price and the three-month contract for copper was also reduced. .

Last week, the discount was $26 per ton. This is the lowest level since last July.

The Yangshan Copper Premium is a premium in China The price of copper, which reflects the demand for imported copper into the country fell by 6%, to $50 per ton. This was its lowest level in six weeks, just before the National Day holiday, which normally reduces overall trading activity.

From October 1 to 8, the financial markets in Mainland China will be closed.

China's poor manufacturing data also affected the market sentiment. An official survey released on Tuesday showed that China's manufacturing activity declined for the sixth consecutive month in September. This suggests that producers are waiting for more stimulus to boost domestic consumption.

Tin lost 0.5% on the LME to $35,285 per ton. On Monday, the metal reached $35,510 - its highest price since April 4 - after news that Indonesia had ordered the closing of 1,000 illegal tin mining operations in a major producing region.

A tin dealer said that the significance of this move to the tin production in the region was probably overstated.

He added that "the actual impact on tin supplies is still uncertain but this uncertainty fuels fund's involvement in long positions on LME tin".

LME Aluminium and zinc both fell by 0.2%, to $2674.50 and $2935.50 respectively. Lead remained unchanged at $1.995.50 while nickel dropped 0.4%, to $15,270. (Reporting and editing by Leroy Leo; Polina Devtt)

(source: Reuters)