Copper Prices Remain Steady Amid Supply Concerns and Easing Chinese Deflation

Copper prices remain steady at $9,929 a ton on the London Metal Exchange as traders weigh supply risks from Indonesia's Grasberg mine and signs of easing deflationary pressures in China's industrial economy. Freeport McMoRan has suspended operations at the mine after an incident, potentially tightening supply. China's factory deflation has eased for the first time in six months, a tentative sign of progress in the government's campaign to ease overcapacity.

Copper prices remain steady at $9,929 a ton on the London Metal Exchange, as traders weigh supply risks from Indonesia's Grasberg mine and signs of easing deflationary pressures in China's industrial economy. Freeport McMoRan recently announced the suspension of operations at the Grasberg mine following an incident that blocked access to certain areas and temporarily restricted evacuation routes for seven workers Freeport-McMoRan (FCX) Is Up 5.1% After Grasberg Mine Suspension—Has the Operational Risk Thesis Shifted?^[1]. This suspension has the potential to tighten copper supply, particularly given the mine's significance as a cornerstone asset for the company.

Meanwhile, China's factory deflation has eased for the first time in six months, a tentative sign of progress in the government's campaign to ease overcapacity. The producer-price index decreased 2.9% in August from a year earlier, while the consumer-price index fell 0.4%, according to the National Bureau of Statistics China Factory Deflation Eases But Not Enough to Call ...^[2]. This development could indicate that the government's policies to boost demand and consumption are starting to have an effect.

Investors are closely monitoring these developments as they assess the potential impact on copper prices and Freeport McMoRan's operational risk profile. The suspension of Grasberg operations temporarily elevates operational risk, but unless the halt becomes prolonged, its immediate impact on Freeport's short-term catalysts, like smelter integration and US copper pricing, should be limited Freeport-McMoRan (FCX) Is Up 5.1% After Grasberg Mine Suspension—Has the Operational Risk Thesis Shifted?^[1]. However, the long-term implications of the incident and the ongoing deflationary pressures in China's economy remain a focus for market participants.

As of September 10, 2025, copper prices are holding steady, reflecting a balance between the supply risks from Grasberg and the tentative signs of easing deflation in China. The market's reaction to these developments will continue to shape copper prices in the coming months.