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Copper is falling to fresh six-year lows.
On Tuesday, the commodity broke $5,000 a ton for the first time since July 2009.
And copper futures were down more than 2%, near $2.2725 a pound.
Shares of copper miners were also lower amid a broader decline in stocks. Freeport-McMoran and Southern Copper fell more than 3% in morning trading.
Copper fell to six-year lows last month as part of the big sell off in commodities sparked partly on concerns of slowing demand from China.
In a note to clients on Monday, Barclays strategists noted that China's devaluation of the yuan last week further weakened commodities. And, the economic data from China, including a 6% year-on-year slowdown in industrial production, is bearish for the economy and may mean more yuan devaluation.
They wrote: "While we continue to believe China’s copper consumption will increase y/y in 2015, with the main question being the robustness of that growth, that belief is predicated upon the second half of 2015 leading to a stabilization in the Chinese economy via stimulus measures, supporting copper consumption directly and indirectly."
"However, the deterioration in the Chinese economy may continue, and the risk of a Chinese hard landing appears to be growing, not declining, which would undermine our assumption."
Here's a chart showing the drop in copper futures on Tuesday:
(Finviz)
And here's a longer-term look at copper:
(Finviz)
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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 2.1 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 18, 2024 at 43.92. Freeport McMoran has 47 442 200 shares outstanding. |