Copper Surges as Freeport Mine Accident Clouds Global Supply Outlook — Commodities Roundup

MARKET MOVEMENTS:

-- Brent crude oil is down 1% to $67.81 a barrel

-- European benchmark gas is up 1.9% to 32.50 euros a megawatt-hour

-- Gold futures are down 0.2% to $3,760.60 a troy ounce

-- LME three-month copper futures are down 0.3% to $10,280 a metric ton

TOP STORY:

Copper Surges as Freeport Mine Accident Clouds Global Supply Outlook

Copper prices extended gains on Thursday, building on a nearly 4% surge in the previous trading session, after U.S. miner Freeport-McMoRan declared force majeure on contracted supplies from its Grasberg mine in Indonesia due to a fatal mudslide accident.

In midday trade in Europe, futures on the London Metal Exchange rose 1.1% to $10,432.50 a metric ton, after touching $10,485 earlier. Copper producers Anglo-American and Glencore's shares rose 2% and 1.8%, respectively, while Rio Tinto's London-listed shares jumped 2.9%.

"A prolonged disruption at the Grasberg mine could drive copper prices even higher, while intensifying supply challenges for smelters already facing feedstock shortages," analysts at ING said.

OTHER STORIES:

Higher Electricity Prices Aren't All Good for Utilities

Utility bills are getting expensive and catching the attention of politicians. That means unpleasant surprises could be building up for utility investors.

Power prices have been rising faster than inflation for the past few years. Electricity prices in August were 31% higher than four years earlier, compared with about 19% for prices overall, according to data from the Labor Department.

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STEP Energy's Top Shareholder Bids for Rest of Company

STEP Energy Services' majority shareholder has made a non-binding offer to buy the rest of the provider of coiled tubing, fluid and nitrogen pumping, and hydraulic-fracturing solutions.

STEP on Thursday said energy-focused private-equity firm ARC Financial has proposed paying 5.50 Canadian dollars (US$3.96) apiece for shares of the Calgary, Alberta, company it doesn't already own, a 29% premium to Wednesday's closing price of C$4.26.

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Wesdome Gold Taps Gold Industry Veteran Philip Yee as Next Chief Financial Officer

Wesdome Gold Mines appointed former Eldorado Gold finance chief Philip Yee as its next chief financial officer.

Yee will take on the role effective Monday. Raj Gill will remain interim CFO until Yee begins employment at the Canadian gold miner, then will resume his position as senior vice president of corporate affairs and investor relations.

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Liontown Resources Posts Annual Net Loss

Liontown Resources reported a net loss for the first year of operations at its Kathleen Valley lithium mine, as the Australian company navigated a slump in prices for the battery metal.

Perth-based Liontown said Thursday that it made a net loss of 193 million Australian dollars, equivalent to US$127 million, in the year through June. That included an A$81 million noncash write-down of stockpiles it flagged to investors in July.

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Starbucks to Cut Hundreds More Corporate Jobs, Close Stores

Starbucks is laying off 900 more corporate workers and closing some North American stores, the latest moves to trim costs and plow money into improving its cafes.

The Seattle-based coffee company said Thursday that most of the affected positions are located in North America. Starbucks said it is also eliminating many open positions. The company plans to notify affected workers Friday and asked corporate employees to work from home Thursday and Friday.

MARKET TALKS:

Return of Argentina Export Taxes Lifts CBOT Grains -- Market Talk

0956 ET - After being temporarily lifted earlier this week, Argentina's export taxes on its grain shipments are back--this after the government raised $7 billion by Wednesday evening. The temporary drop in export taxes piqued the interest of major buyers like China, which in turn pressured grain futures earlier this week. "Argentina has been animating the grain market and in particular the soybean complex," says Argus in a note. CBOT soybeans are up 0.4%, corn rises 0.5%, and wheat climbs 1.1%. (kirk.maltais@wsj.com)

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Canadian Resources Activity Contracts With Drop in Exports, Lower Prices -- Market Talk

0943 ET - Activity in Canada's natural resources sector weakened sharply in the last quarter. Real GDP in the sector contracted 2.4% in 2Q, a reversal after growth of 1.8% in the first three months, Statistics Canada data shows. That was the largest decrease since 2Q 2020 and significantly deeper than the 0.4% decline in economy-wide GDP for the quarter. The declines for the sector were broad, with a notable 4.9% fall for forestry, 2.5% drop for energy and 1.2% decline for minerals and mining. The quarter was marked by an overall 4% fall in natural resources prices, including a steep decline for crude oil, and a 6.6% slump in sector export volumes even as imports increased 6.6%. (robb.stewart@wsj.com; @RobbMStewart)

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U.S. Natural Gas Gains Ahead of Storage Data -- Market Talk

0930 ET - U.S. natural gas futures are higher with rising LNG demand and lower production providing support as weather-driven demand enters the slow shoulder period. "Plaquemines LNG is reaching fresh facility highs as natural gas production readings decline, offering signs of underlying fundamental support," Eli Rubin of EBW Analytics says in a note. "The likelihood that a cold October will raise prices has retreated, however." Immediate focus is on the EIA's weekly storage report at 10:30 a.m. ET, which is expected to show a near-average injection leaving the inventory surplus just above 200 Bcf. Nymex natural gas is up 3.3% at $2.953/mmBtu. (anthony.harrup@wsj.com)

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European Gas Price Rises on Geopolitical Risks, Colder Weather Ahead -- Market Talk

1359 GMT -- A colder weather forecast and risks of disruptions to Russian supplies push European natural-gas prices higher, with the benchmark Dutch TTF contract up 2.1% to 32.59 euros a megawatt hour in afternoon trade. Storage levels across the bloc are 82% full, above the Nov. 1 target, while Norwegian gas exports increased after weeks of maintenance works. "The region has been successful in meeting goals to refill storage levels," ANZ analysts say. "However, they remain lower than in previous years." Meanwhile, Ukrainian attacks on Russian energy infrastructure, the latest EU sanctions package and President Trump's calls for European countries to stop buying Russian energy provide underlying support to prices. According to DNB, investment funds increased their net positioning in TTF by 2 terawatt hours last week, which means the funds are holding more long positions, expecting a rise in prices. (giulia.petroni@wsj.com)

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Geopolitical Risk Outweighs Oversupply Concerns for Oil -- Market Talk

0910 ET - Oil futures pull back after two sessions of gains with increasing tensions over the Russia-Ukraine war keeping prices up despite concerns about imminent oversupply. Russia risk "makes shorting many parts of the complex very tricky indeed," Neil Crosby of Sparta Commodities says in a note. While the market looks better supplied post-summer and macroeconomic risk is rising, Russia and wider geopolitical risk is also higher, he says. "No wonder flat price has been so range-bound this summer." Of the opposing upside and downside risks, "at the moment it does look like the Ukraine situation is winning out, but the mood may change by next week." WTI is down 0.5% at $64.68 a barrel, and Brent is off 0.4% at $69.04.(anthony.harrup@wsj.com)

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Gold Turns Lower After Weekly Jobless Claims Fall -- Market Talk

0904 ET - Gold futures turn negative after weekly jobless claims fall to 218,000 from 232,000, while economists surveyed by WSJ forecast the layoff indicator at 235,000. The surprise decrease eases concerns about the job market, and looks to curb the appetite of safe haven investors. The U.S. dollar index also turns positive following the release. Most-active gold futures are down 0.1%, to roughly $3,763 a troy ounce. Silver has pared some early gains too, but remains up 1.3% to $44.79 a troy ounce. (kirk.maltais@wsj.com)

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Palm Oil Closes Higher on Stronger Exports -- Market Talk

1012 GMT - Palm oil closed higher after data signaled improvement in exports in September. Malaysia's palm oil exports for Sept. 1-25 likely rose 11.31% from a month earlier to 1,185,422 metric tons, cargo surveyor AmSpec Agri Malaysia said. Crude palm oil futures "ended higher on the back of stronger exports and expectation of weak production in coming weeks," says David Ng, a trader at Kuala Lumpur-based Iceberg X. He sees support at 4,350 ringgit a ton and resistance at 4,580 ringgit a ton. The Bursa Malaysia derivatives contract for December delivery closed 61 ringgit higher at 4440 ringgit a ton. (jason.chau@wsj.com)

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Copper Climbs as Freeport Mine Accident Worries Market -- Market Talk

0824 GMT - Copper prices extend gains in early trading, after surging nearly 4% in the previous session following news that Freeport-McMoRan declared force majeure on contracted supplies from its Grasberg mine in Indonesia. Futures on the London Metal Exchange are up 1.3% to $10,455.50 a metric ton, after reaching $10,469.50 earlier in the session. The Grasberg mine--one of the world's largest--makes up more than 70% of Freeport's total copper production and accounts for about 3.2% of global copper supply, according to ANZ. "This latest event highlights the copper market's sensitivity to supply disruptions," analysts at the firm say. The percentage of copper production hit by unplanned disruptions has steadily increased from just under 5% in 2014 to 5.7% in 2024, and is expected to surpass 6% this year, ANZ says. (giulia.petroni@wsj.com)

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U.K. Miners Rise as Copper Prices Surge on Supply Fears -- Market Talk

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September 25, 2025 10:37 ET (14:37 GMT)

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