Freeport McMoRan’s Grasberg Wakes, China Copper Scrap Price Tanks

Copper mining company Freeport McMoRan Copper and Gold Inc. reportedly began producing copper again from its Grasberg mine, the world’s second-biggest mine.

“The Arizona-based company has slowly resumed open-pit mining at its Grasberg complex in eastern Indonesia, more than a month after a training tunnel collapsed, killing 28 people in one of Indonesia’s worst mining accidents. Underground production remained shut,” according to Reuters.

The company’s president of Indonesian operations told the news agency that, “at the beginning of course, there will only be a very, very small amount of production because we have to prepare everything and gradually increase production.”

However, contrary to the supply worries the incident has sparked, copper prices continue declining.

The price of Chinese bright copper scrapfell 10.0 percent on Friday, June 21, making it the day’s biggest mover. After falling 1.5 percent, the price of Chinese copper wire reached a 30-day low. The price of Chinese copper bar fell to a 30-day low after shifting 1.3 percent. The cash price of Chinese copper reached a 30-day low after decreasing 1.3 percent.

U.S. copper producer grade 122 saw its price drop 2.1 percent to a 30-day low last Friday. The price of U.S. copper producer grade 110 fell 2.1 percent to a 30-day low last Friday. Last Friday a price drop of 2.0 percent carried the price of U.S. copper producer grade 102 to a 30-day low as well.

Friday saw the cash price of primary Japanese copper drift down 0.1 percent after a couple of stagnant days.

The 3-month price of copper fell 2.4 percent to a 30-day low on the LME of $6,835 per metric ton last Friday. The cash price of primary copper fell to a 30-day low at $6,808 per metric ton after shifting 2.4 percent.