(Adds comments and updates prices) By Brijesh Patel Oct 7 (Reuters) – Copper prices rose on Tuesday on concerns over supply from top producer Chile and major supplier Indonesia, although a stronger U.S. dollar kept the gains in check. Three-month copper on the London Metal Exchange rose 0.4% to $10,691.50 per metric ton by 0257 GMT. On Monday, the metal hit its highest since May 2024 before easing. Miner Freeport said on Sunday that five workers, missing since a mud flow disaster at the Grasberg copper and gold mine in Indonesia last month, were found dead. "This tragic event, combined with ongoing tightness at other major copper-producing sites, has injected a firm floor under prices," Fawad Razaqzada, market analyst at City Index and FOREX.com, said in a note. "With U.S. inventories still elevated yet tightening slowly, traders appear confident that near-term supply constraints could offset that." As the world's second-largest copper mine, Grasberg accounts for 3% of global concentrate production. Operational suspensions at Grasberg, coupled with disruptions at Kamoa-Kakula in the Democratic Republic of Congo and the El Teniente mine in Chile, suggest supply concerns are likely to persist this year. Analysts estimate the disruptions could result in a loss of 591,000 tons of copper output between September 2025 and 2026 end, prompting Goldman Sachs, Citi and Bank of America to raise their price forecasts. Chile's copper output fell 9.9% year-on-year in August after an accident at Codelco's flagship mine on July 31. Meanwhile, the dollar index extended gains against its rivals. A stronger dollar makes greenback-denominated assets more expensive for holders of other currencies. Among other London metals, aluminium fell 0.3% to $2,716.50 a ton, nickel eased 0.2% to $15,445, lead slipped 0.3% to $1,998.5, tin lost 0.7% to $36,530, while zinc was steady at $3,007. Chinese markets are closed from October 1 to 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 and Subhranshu Sahu)
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