July 28 (Bloomberg) -- Copper dropped for a second day after Freeport-McMoRan Inc. received approval from Indonesia to resume exports from its Grasberg mine.
The metal for delivery in three months fell as much as 0.5 percent to $7,090 a metric ton on the London Metal Exchange and traded at $7,123 at 10:36 a.m. in Hong Kong. Copper has lost 3.2 percent since the start of the year.
Freeport plans to resume copper concentrate exports from Indonesia in August, the company said in a statement Friday. The company had reduced operations by about half at the Grasberg mine, the third largest in the world, after the government introduced restrictions in January to encourage local raw- material processing.
“The exports of concentrates will now be priced in and that’s why prices are down,” Tetsu Emori, a fund manager at Astmax Asset Management Inc., said by phone from Tokyo. “We don’t know yet how much of an impact it will have on actual production on metals.”
Copper futures for September in New York was little changed to $3.242 a pound, while the contract for the same month in Shanghai dropped 0.5 percent to 50,570 yuan ($8,173) a ton.
On the LME, aluminum, zinc and lead climbed, while nickel fell. Tin hadn’t traded.
Tin shipments from Indonesia, the largest exporter, are set to contract the most in seven months in July, Agung Nugroho, corporate secretary at PT Timah, said July 23.