https://www.mining.com/copper-price-spikes-on-freeports-grasberg-force-majeure/#google_vignette
Copper prices jumped Wednesday after Freeport-McMoRan (NYSE: FCX) declared force majeure on contracted supplies from its Grasberg Block Cave mine in Indonesia.
Three-month futures traded above $10,496 per ton ($4.7710 per lb.) on the CME, up 2.74% for the day. In London, copper for delivery in three months rose as much as 2% to $10,172 a ton on the London Metal Exchange, the highest level in more than 15 months.
Freeport’s shares fell as much as 10.4% in New York, while rivals Glencore PLC (+3%), Teck Resources (+5%), and Antofagasta (+7.4%) climbed.
Analysts described it as a “negative near-term development that will likely put Freeport in the penalty box.” However, BMO also highlighted that 60% of Freeport’s copper production comes from North and South America, meaning the company still has strong regional output. At the same time, a potential increase in copper prices stemming from reduced supply could partly offset the impact.
