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Copper and the Economy: What Should Investors Watch? (Continued from Prior Part) US copper demand
We’ve already looked at the recent indicators of the Chinese copper industry. In this part, we’ll analyze how US copper demand is shaping up. Thompson Creek Metals (TC) gets a major portion of its revenues from US markets (VTI). The iShares North American Natural Resources ETF (IGE) has invested in several energy and mining companies in the United States. Pan American Silver (PAAS) and Stillwater Mining (SWC) each forms ~0.8% of IGE.
Strong indicators
The above chart shows the trend in US vehicle sales. April vehicle sales increased 3% on a year-over-year basis to reach a seasonally adjusted annual rate (or SAAR) of 16.46 million units. However, sales declined compared to a SAAR of 17.05 million units in March.
Copper radiators, motors, brakes, and bearings are used in the automobile industry. According to estimates, copper content in an average mid-sized vehicle is around 50 pounds. Higher vehicle sales bode well for the US copper demand.
Higher construction spend
US construction spending has been on an uptrend. In the latest reading in March, total construction spending increased 2.2% on a year-over-year basis.
Copper is used widely to produce plumbing material. It’s used to make taps, valves, and other bathroom fittings. Copper is also used in water pipes and fire sprinkler systems in buildings. Higher construction spending is positive for copper demand.
While the real estate industry has been strong in the United States, the Chinese property market has slowed down. A slowdown in the Chinese real estate sector is negative for the global copper industry.
In the next part, we’ll see how the recent up-move in crude oil prices is impacting Freeport-McMoRan.
Continue to Prior Part Browse this series on Market Realist:
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Pan American Silver Corp.
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PRODUCER |
CODE : PAAS |
ISIN : CA6979001089 |
CUSIP : 697900108 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Pan American Silver is a silver producing company based in Canada. Pan American Silver produces silver, copper, gold, lead and zinc in Argentina, in Bolivia, in Mexico and in Peru, develops gold and silver in Mexico, and holds various exploration projects in Argentina and in Mexico. Its main assets in production are QUIRUVILCA MINE, HUARON and MOROCOCHA in Peru, LA COLORADA, ALAMO DORADO, LLUVIA DE ORO and DOLORES MINE in Mexico, SAN VICENTE in Bolivia and MANANTIAL ESPEJO in Argentina, its main asset in development is LA PRECIOSA in Mexico and its main exploration properties are ORO BLANCO, EL DURAZNO, SAN ANTONIO ORO BLANCO, SANTA LUCIA, REAL VIEJO, PLANCHAS DE PLATA, LA DURA, LA RESERVA / EL CORREO, LA VIRGINIA GOLD/SILVER, LA CRUZ and LA BOLSA in Mexico, FLAMINGO, ESPEJO, REGALO, NAVIDAD, CALCATREAU, HOG HEAVEN, WATERLOO and LOMA DE LA PLATA (NAVIDAD) in Argentina, RIVER VALLEY PGM in Canada and PICO MACHAY in Peru. Pan American Silver is listed in Canada, in Germany and in United States of America. Its market capitalisation is US$ 2.9 billions as of today (€ 2.7 billions). Its stock quote reached its lowest recent point on November 07, 2008 at US$ 10.01, and its highest recent level on April 25, 2024 at US$ 18.97. Pan American Silver has 153 176 265 shares outstanding. |