| How China Became the Global Copper Giant | |
| | |
|
Key Indicators Freeport Investors Should Track (Part 4 of 17) (Continued from Part 3) China’s top spot in copper
The US was the biggest consumer of copper in 1990, accounting for 20% of global copper consumption. China, on the other hand, accounted for only 5% of global copper consumption in 1990. China is the biggest consumer of copper now, accounting for more than 42% of global copper consumption. Japan was the second largest copper consumer in 1990 and is now the fourth largest consumer. The changing trends in copper consumption are a reflection of the new world dynamics.
China is currently the global manufacturing hub, and it has overtaken the US and Japan as premier manufacturing locations. China produces and exports a variety of appliances that contain copper. The manufacturing sector is among the major consumers of copper in China. Analysts track China’s manufacturing PMI to gauge Chinese copper demand.
Power infrastructure
The support from the Chinese government is a key factor behind the growth in that country’s copper consumption. The government’s massive investments in infrastructure help boost its copper consumption. The Chinese government invested heavily in power generation and transmission lines. The power sector is the biggest consumer of copper in China.
The above chart shows the physical properties of copper. These properties drive copper’s use and versatility in the power sector.
Housing sector
China’s real estate sector is also among the major copper consumers. The demand from the power sector is also dependent on the real estate sector to some extent, since new transmission lines must be laid for new housing projects, driving the demand for copper. The slowdown in China’s housing sector has negatively impacted copper producers like Freeport-McMoRan (FCX), Teck Resources (TCK), Glencore (GLNCY), and Southern Copper (SCCO).
FCX currently forms 3.1% of the Materials Select Sector SPDR ETF (XLB). In the next article, we will discuss China’s housing sector in more detail.
Continue to Part 5 Browse this series on Market Realist:
|
|
|
Freeport McMoRan Copper and Gold Inc.
|
|
PRODUCER |
CODE : FCX |
ISIN : US35671D8570 |
|
| |
ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Freeport McMoran is a gold and copper producing company based in United states of america. Freeport McMoran produces gold, copper, 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 US$ 69.9 billions as of today (€ 65.2 billions). Its stock quote reached its lowest recent point on March 06, 2020 at US$ 10.00, and its highest recent level on April 24, 2024 at US$ 48.24. Freeport McMoran has 1 448 000 000 shares outstanding. |