Copper slips from more than 16-month peak as dollar firms

Reuters - Copper prices fell on Monday after touching a more than 16-month high earlier in the session, as a stronger dollar offset support from concerns over supply from top producer Chile and major supplier Indonesia.

Three-month copper on the London Metal Exchange CMCU3 fell 0.4% to $10,666.50 per metric ton as of 0726 GMT, after hitting its highest since May 2024 in the day.

The U.S. dollar index .DXY rose 0.4% to a more than one-week high against its rivals. A stronger dollar makes greenback-denominated assets more expensive for holders of other currencies. FRX/

Miner Freeport FCX.N said on Sunday five workers, missing since a mud flow disaster at the Grasberg copper and gold mine in Indonesia, were found dead.

As the world's second-largest copper mine, Grasberg accounts for 3% of global concentrate production.

Analysts estimate the disruption could result in a loss of 591,000 tons of copper output between September 2025 and 2026 end, prompting Goldman Sachs, Citi and Bank of America to raise their price forecasts.

"Bullish momentum in copper continued, with prices spiking to $10,700/t. Investors remained concerned around supply challenges in Chile and Indonesia," ANZ said.

"Mine supply challenges, along with China's anti-involution drive, are impacting refined copper production growth."

Chile's output fell 9.9% year-on-year in August after an accident at Codelco's flagship mine on July 31.

Among other London metals, aluminium CMAL3 eased 0.3% to $2,701.50 a ton, nickel CMNI3 fell 0.2% to $15,395, lead CMPB3 slipped 0.5% to $2,010, tin CMSN3 dipped 2% to $36,715 and zinc CMZN3 lost 0.6% to $3,017.

"Aluminium prices also surpassed the $2,700/t mark last week, supported by both supply concerns and strong demand as operating rates improve," ANZ said.

Chinese markets are closed from October 1 to October 8 for the Golden Week holiday.