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Key Indicators Freeport Investors Should Track (Part 3 of 17) (Continued from Part 2) Copper prices
Previously, we discussed the dynamics of copper’s supply and demand. In this article, we will look at the latest trends in copper prices. Copper prices directly impact the profits of copper producers like Freeport-McMoRan (FCX), Southern Copper (SCCO), Teck Resources (TCK), and Glencore Plc. (GLNCY). Freeport currently forms 3.11% of the Materials Select Sector SPDR ETF (XLB).
Prices steady
The above chart shows the movement in spot copper prices. Prices have dropped ~6% so far in 2015, and prices of all industrial commodities have dropped in 2015. Iron ore prices are down ~12% in 2015, while aluminum has dropped more than 6%. Prices of steel products have also come down. Spot hot rolled coil prices are down by ~20% in the US markets.
Copper prices fell steeply at the beginning of 2015, although prices have recovered smartly since then. This is partially due to supply disturbances at some key copper mines.
Uneven trend
The trend in copper prices has been clearly uneven this year. Higher copper prices benefit copper producers like Freeport-McMoRan. Investors should watch copper prices closely in the coming months to understand which way copper prices are heading.
Copper prices reached their peak in 2011 and have fallen more than 40% since then. This is mainly driven by the weakness in the Chinese economy. China accounts for more than 42% of global copper consumption. Investors need to track the indicators of the Chinese economy to understand the trends for copper prices.
In the next article, we will analyze the key indicators of the Chinese copper industry.
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 2.1 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 19, 2024 at 45.18. Freeport McMoran has 47 442 200 shares outstanding. |