Copper futures hit record high of Rs 963.45/kg over global supply concerns

New Delhi, Sep 25 (PTI) Copper prices climbed Rs 17.7 to hit a fresh peak of Rs 963.45 per kilogram in the domestic futures market on Thursday tracking strong global cues, following a major supply disruption at Freeport-McMoRan's Grasberg mine.

Freeport-McMoRan Grasberg mine in Indonesia is the world's second-largest copper source.

On the Multi Commodity Exchange, copper contracts for October delivery rose Rs 17.7 or 1.87 per cent to hit a record high of Rs 963.45 per kg.

Similarly, the November contract for red metal futures increased by Rs 17.2 or 1.81 per cent to hit an all-time high of Rs 967.05 per kg.

In the international markets, Copper futures on the London Metal Exchange rose more than 1 per cent to hit a record high of USD 10,501.30 per tonne. Comex copper futures was quoting 1.45 per cent higher to USD 4.88 per pound.

On Wednesday, Freeport-McMoRan declared force majeure, meaning it would be unable to fulfil contracts to customers from its copper mine in Indonesia due to forces beyond its control.

Earlier this month, mining company Freeport's said operations at its Grasberg mine were halted after a fatal mudslide.

Grasberg, which is jointly owned by Freeport and the Indonesian government, accounts for around 3 per cent of global copper supply this year (prior to the disruptions).

Freeport further said it was not possible to forecast future copper production from the mine and that the disaster was "likely to result in the deferral of significant production in the near-term".

It said a return to previous operational levels "could potentially be achieved" in 2027, the company said.

Meanwhile, Canadian mining company Hudbay Minerals announced a shutdown at its Constancia mill in Peru due to ongoing political protests, adding disruption in global copper supplies.

The Constancia mine is one of the world's major copper mines.

"Prolonged disruptions risk further tightening supply, lifting copper prices and straining the smelting sector. On the MCX, copper traded firm on extended supply concerns, though firmer dollar may cap upside," brokerage firm Kotak Securities said. PTI SHW HG HG TRB TRB