METALS-Copper hits three‑month high on longer Grasberg mine recovery

May 8 (Reuters) - Copper climbed to a three-month high on Friday and was on track for its best week of 2026 so far after Freeport-McMoRan FCX.N flagged a slight delay in the recovery of production at its Grasberg mine in Indonesia, tightening supply expectations.

Benchmark three-month copper CMCU3 on the London Metal Exchange was up 1.3% to $13,571 a metric ton at 1600 GMT. It earlier touched $13,619, the highest since January 29, when the metal spiked to its all-time peak of $14,527.50.

Freeport's Indonesia unit said in a statement it was targeting a return to full production at Grasberg by early 2028. The U.S. miner said last month that operations were expected to "approach full capacity by the end of 2027".

Mining engineers "never talk up a rapid recovery", said Panmure Liberum analyst Tom Price. "But I've got to say, it is longer than I expected. I thought it would be coming into the market later this year."

LME copper was on course for a 4.4% weekly gain, its biggest since the week ended October 3, 2025.

U.S. Comex copper HGcv1 continues to outperform the global benchmark, rising 2.1% to $6.31 per lb, or $13,902 a ton, and heading for a weekly gain of 6.3% amid hopes of a resolution to the conflict in the Gulf.

"My general view on copper is if de-escalation happens, investors will then go back to pre-war themes," Price said, adding that U.S. investors were buying protection ahead of possible U.S. tariffs on copper.

In China, Shanghai Futures Exchange copper stocks CU-STX-SGH fell 5.6% from last week to 181,333 tons, the lowest since January. ShFE aluminium stocks AL-STX-SGH continued to move in the opposite direction, rising 2% to 492,728 tons, the highest in six years.

LME aluminium CMAL3 gained 0.4% to $3,507.50 a ton as Gulf supply constraints persist, while nickel CMNI3 eased 1.2% to $18,905 and touched a two-week low, after hitting a near-two-year peak of $20,000 on Wednesday.

Lead CMPB3 lost 0.3% to $1,975, zinc CMZN3 dipped 0.7% to $3,433 and tin CMSN3 shed 1.6% to $53,755.