Copper Price Spikes on Freeport Grasberg Force Majeure

Copper prices rallied sharply on Wednesday after Freeport-McMoRan declared force majeure at its Grasberg mine in Indonesia. The accident-related disruption halted production at the world’s second-largest copper mine, fueling immediate concerns about global supply. Futures on the CME rose over 2.7% to $10,496 per ton, while London prices climbed past $10,170—the highest in over 15 months.

Grasberg Force Majeure Roils Global Copper Market

The Grasberg force majeure comes after a tragic accident on September 8 that killed two workers and left five still missing. A rush of 800,000 metric tons of wet material swept across multiple mine levels, damaging key infrastructure and forcing a complete production halt. Grasberg accounts for about 70% of PT Freeport Indonesia’s projected copper and gold output through 2029. The mine’s “PB1C” block was the site of the incident, but the damage extended to adjacent blocks critical to operations.

Freeport’s updated guidance forecasts a 4% drop in copper and 6% decline in gold sales for Q3. Analysts at BMO Capital Markets noted the disruption aligns with weaker second-half 2025 expectations but warned the preliminary 35% cut to 2026 production adds downside risk. Meanwhile, miners like Glencore, Teck Resources, and Antofagasta saw stock gains on supply shortage optimism.

Broader Industry Impact and Additional Disruptions

Beyond the Grasberg crisis, Hudbay Minerals reported a shutdown at its Constancia mine in Peru due to local protests. These simultaneous events further tighten global copper supply, intensifying pressure on pricing. Analysts expect elevated copper prices to persist if production disruptions continue, especially as demand from EVs, renewable energy, and data centers remains strong.

While Freeport maintains significant output from the Americas, the Grasberg force majeure highlights the fragility of global copper supply chains. The combination of physical damage, worker safety concerns, and geopolitical unrest threatens to delay key material deliveries and impact commodity pricing across the sector.

SuperMetalPrice Commentary:

The Grasberg force majeure marks a pivotal moment for the global copper market. With production halted at one of the world’s largest mines, and additional disruptions in Peru, copper prices may see extended volatility. Investors should watch for further supply shocks and possible policy responses in major producer nations. In the near term, elevated copper pricing could support battery materials producers, but supply-side instability raises questions for long-term project financing and procurement strategies across metals and materials industries.