The global copper supply chain is facing fresh headwinds as Indonesian copper export shipments are delayed due to an unexpected shutdown at a major smelter. The facility, which processes ore from the massive Grasberg mine, was forced to halt operations over the weekend after a boiler leak was discovered.

According to sources familiar with the matter, buyers of copper from the Gresik smelter have been notified that the plant will remain offline for several weeks while assessments and necessary repairs are carried out. The Gresik smelter is responsible for processing ore from the Grasberg mine, which is jointly owned by the Indonesian government and Freeport-McMoRan Inc. The sources requested anonymity as they are not authorized to discuss the issue publicly.

This disruption comes at a time when the global copper market is already experiencing tight supply conditions. With significant volumes of copper being redirected to the United States and increased shipments to China in recent weeks, the London Metal Exchange (LME) benchmark copper contract has remained above $14,000 per tonne for five consecutive trading sessions, marking an all-time high.

Meanwhile, the Grasberg super-pit mine in Papua, Indonesia, has partially resumed operations after being impacted by a mudslide last year. However, a full return to normal production levels is not expected until 2028.