Recasts, adds dollar graph and updates prices
By Brijesh Patel
Oct 6 (Reuters) - Copper prices fell on Monday after touching a more than 16-month high earlier in the session, as a stronger dollar offset support from concerns over supply from top producer Chile and major supplier Indonesia.
Three-month copper on the London Metal Exchange fell 0.4% to $10,666.50 per metric ton as of 0726 GMT, after hitting its highest since May 2024 in the day.
The U.S. dollar index rose 0.4% to a more than one-week high against its rivals. A stronger dollar makes greenback-denominated assets more expensive for holders of other currencies.
Miner Freeport on Sunday five workers, missing since a mud flow disaster at the Grasberg copper and gold mine in Indonesia, were found dead.
As the world's second-largest copper mine, Grasberg accounts for 3% of global concentrate production.
Analysts estimate the disruption could result in a of 591,000 tons of copper output between September 2025 and 2026 end, prompting Goldman Sachs, Citi and Bank of America to their price forecasts.
"Bullish momentum in copper continued, with prices spiking to $10,700/t. Investors remained concerned around supply challenges in Chile and Indonesia," ANZ said.
"Mine supply challenges, along with China's anti-involution drive, are impacting refined copper production growth."
Chile's output fell 9.9% year-on-year in August after an accident at Codelco's flagship mine on July 31.
Among other London metals, aluminium eased 0.3% to $2,701.50 a ton, nickel fell 0.2% to $15,395, lead slipped 0.5% to $2,010, tin dipped 2% to $36,715 and zinc lost 0.6% to $3,017.
"Aluminium prices also surpassed the $2,700/t mark last week, supported by both supply concerns and strong demand as operating rates improve," ANZ said.
Chinese markets are closed from October 1 to October 8 for the Golden Week holiday.
For the top stories in metals and other news, click
or
(Reporting by Brijesh Patel in Bengaluru; Editing by Sumana Nandy, Subhranshu Sahu and Sherry Jacob-Phillips)
((Brijesh.Patel1@thomsonreuters.com [Brijesh.Patel1@thomsonreuters.com]; Ph no. +91 9590227221;))
For related news and prices, click on the codes in brackets: LME price overview COMEX copper futures All metals news All commodities news
Foreign exchange rates SPEED GUIDES
