Copper

surged more than three per cent in London as Chinese traders returned from the long holiday break in a bullish mood, reacting to fresh signs of supply disruptions.

Futures on the London Metal Exchange jumped to a high of US$11,000 a ton, nearing an all-time high above US$11,100 struck last year, supported by strong buying on the Shanghai Futures Exchange and a buoyant start to trading as North American markets opened.

Prices have been boosted by a series of production downgrades at key mines, the latest being

Teck Resources Ltd.’

s flagship asset in Chile. Traders are also monitoring developments at Grasberg, the world’s second-largest copper mine, following a mudslide last month that halted production.

The Freeport-McMoRan Inc. site in Indonesia could restart production only by mid-2026, state news agency Antara reported, citing a local official.

Copper has also been boosted by expectations that the

United States Federal Reserve

will further ease policy later this year. Lower

interest rates

usually make metals, which are non-yielding assets, more attractive and may lift demand from industrial users.

  • Teck cuts copper output at mine that’s key to Anglo deal
  • Copper rally gathers steam on supply concerns and weaker dollar

The Fed’s September minutes showed most officials backed more easing, though many emphasized inflation risks. Investors are betting on rate cuts in October and December.

The metal was three per cent higher at US$10,990 a ton at 2:22 p.m. in London. Most other metals advanced, including aluminum, which added 1.8 per cent.

—With assistance from John Deane.

Bloomberg.com