Shanghai copper hits over 16-month high on supply concerns

Shanghai copper jumped to a more than 16-month high on Thursday as trading resumed in China after the National Day holiday, with concerns over supply from major mines supporting prices in an already tight market.

The most-traded copper contract on the Shanghai Futures Exchange closed daytime trading 4.22% higher at 86,730 yuan ($12,165.97) per metric ton.

Earlier in the session, the contract rose to the highest since May 22, 2024 at 86,950 yuan.

Benchmark three-month copper on the London Metal Exchange was up 1.92% at $10,873.5 a ton, as of 0704 GMT, extending its Wednesday gain to refresh a 16-month peak.

The International Copper Study Group cut its 2025 market surplus estimate on Wednesday to 178,000 tons from 289,000 tons due to disruptions at major mines including Freeport's massive Grasberg mine in Indonesia, which has been shut for a month.

The group now expects a 150,000-ton deficit in 2026, compared with its previous estimate of a 209,000-ton surplus.

On Wednesday, Teck Resources cut its forecast for production at the flagship Chilean copper mine Quebrada Blanca through 2028.

Copper prices also found support from the U.S. dollar drifting lower. A weaker dollar makes commodities traded in the greenback cheaper for traders using other currencies.

Among other SHFE base metals, tin posted the second-biggest gain, with the most-active contact closing daytime trading 3.49% higher at 287,770 yuan a ton as a crackdown on illegal tin mining intensified in top exporter Indonesia this week.

Indonesia transferred assets including smelters and equipment to state tin miner PT Timah on Monday, as President Prabowo Subianto urged authorities including military, custom office and the coast guard to continue their efforts to stop illegal mining.

Aluminium gained 1.71%, zinc rose 1.87%, nickel surged 2.52% and lead increased 1.21%.

Among other LME metals, aluminium was up 1.22%, zinc gained 0.65%, nickel rose 1.26%, lead was up 0.92% and tin climbed 1.11%.