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As China returns to the market, copper prices are close to $11,000 per tonne. However, there remain supply concerns.

The copper price hit a 16 month high on Thursday as it rose toward $11,000 a metric ton. Investors in China, the world's largest metals consumer, were returning from a holiday of a week and there was still concern about supply from major mines.

As of 0915 GMT, the benchmark three-month copper price on London Metal Exchange had risen 1.9% to $10,872 per kilogram. It had earlier reached $10,890.50 - the highest level since May 2024, when the metal hit a record high of $11,104.50.

As trading resumed in China, the most traded copper contract at Shanghai Futures Exchange hit a 16 month high of 87 700 yuan (12,310 dollars) per ton.

Total stocks of copper in LME warehouse system The copper price was 139.475 tonnes, the lowest level since late July. The price of a ton dropped to $13 from $29.50 per ton on Wednesday. This indicates a tighter supply in the near term.

Teck Resources reduced its production forecast for the Chilean Quebrada Blanca Mine through 2028 on Wednesday.

Due to disruptions in major mines including Grasberg, Indonesia, which was closed for a full month, the International Copper Study Group lowered their 2025 market surplus estimates to 178,000 tonnes from 289,000 tons.

Tom Price, an analyst at Panmure Liberum, said that if there was any expectation of Grasberg returning faster than what people were told in the last couple of weeks then copper prices would drop.

Price said that other events could also trigger a pullback, including a resolution to the U.S. shutdown and signs of an end to the U.S. rate-cut cycle.

Copper's strength pushed the base complex up. Aluminium climbed 14% to $2.781.50 after touching $2.793, the highest level since May 2024. Zinc rose 0.9% to $3,000, nickel climbed 0.8% to $16,470, lead climbed 1% to $2001, and tin increased 1.1% to $35,740. (1 Chinese Yuan Renminbi = 7.1245 USD) (Reporting and editing by Subhranshu Sahu, Harikrishan Nair and Subhranshu Sahu)

(source: Reuters)