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Copper Industry April Update (Part 3 of 10) (Continued from Part 2) Chilean refined copper production
Chilean refined copper production stood at 0.45 million tons in February. This is the lowest production in Chile in almost two years. As noted in the previous part of our series, Chile (ECH) is a major copper producer and exporter. Southern Copper (SCCO) has mining operations in Chile. Indeed, SCCO has the biggest proven copper reserves.
Production down
The previous chart shows the trend in Chilean refined copper production. In the latest reading taken in February, production was down ~15% from the previous month. On a YOY (year-over-year) basis, production fell by more than 1%. Incessant rains causing flooding are behind the decline in February’s copper production.
China
February’s refined copper production in China (FXI) increased ~12% on a YOY basis. Chinese refining capacity has increased substantially over the last few years. However, copper demand has been tepid, as the Chinese economy has slowed down. China, however, still continues to add to its refining capacity. In the coming parts of our series, we’ll analyze how key Chinese economic indicators relate to the copper market.
Greater copper production in China is negative for the global copper industry. Already, the steel and aluminum industry are reeling from the impact of overproduction and higher exports from China.
Teck Resources (TCK) supplies steelmaking coal to China. Almost a quarter of TCK’s coal shipments are to China. Freeport-McMoRan (FCX) also gets a major portion of its revenues from China. These companies are directly impacted by the slowdown in the Chinese economy.
Investors in copper companies should also track the inventories at LME (London Metal Exchange) warehouses. We’ll look at this in greater detail, in our next part.
Continue to Part 4 Browse this series on Market Realist:
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VanEck Vectors Global Alternative Energy ETF
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PRODUCER |
CODE : FCX |
ISIN : US35671D8570 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Freeport McMoran is a copper and gold producing company based in United states of america. Freeport McMoran produces copper, gold, cobalt, molybdenum and silver in Chile, in Congo Dem. Rep. of, in Indonesia and in Peru, develops copper in Peru, and holds various exploration projects in Chile. Its main assets in production are CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI and MORENCI - ROM LEACH in Chile, GRASBERG, SIERRITA and BAGDAD in Indonesia, TENKE FUNGURUME and TYRONE in Congo Dem. Rep. of and CERRO VERDE in Peru, its main asset in development is SAFFORD in Peru and its main exploration properties are BAGDAD - ROM LEACH and CHINO - ROM LEACH in Peru and CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH and CLIMAX in Chile. Freeport McMoran is listed in Germany and in United States of America. Its market capitalisation is 2.2 billions as of today (€ 1.9 billions). Its stock quote reached its lowest recent point on March 06, 2020 at 10.00, and its highest recent level on September 19, 2024 at 45.39. Freeport McMoran has 47 442 200 shares outstanding. |