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Copper Industry April Update (Part 9 of 10) (Continued from Part 8) US copper demand indicators
China is the biggest consumer of copper. So, previously in this series, we discussed Chinese economic indicators. Yet Freeport-McMoRan (FCX) gets 45% of its revenues from the North American market. Teck Resources (TCK) and McEwen Mining (MUX) are other leading copper companies in the US.
Freeport currently forms 3.25% of the SPDR S&P Metals and Mining ETF (XME) and 3.1% of the Materials Select Sector SPDR ETF (XLB).
Construction sector
March housing starts declined by 3.5% on a year-over-year basis. Starts dropped by 2.3% in February. Released April 16, the data came in lower than expected. Lower housing starts are negative for copper companies in the US, as the sector is a major copper consumer.
The Architecture Billing Index, a leading indicator of the nonresidential construction industry, was above 50 in the latest reading in February. Readings above 50 are associated with expansion in this industry.
Automobile sales
Vehicle sales in the US are going strong. Sales have been above 16 million SAAR (seasonally adjusted annual rate) for the last several months. In the latest reading in March, vehicle sales were 17.05 million SAAR, up 4.4% on a year-over-year basis. Higher vehicle sales are positive for copper companies such as Freeport.
The US consumer confidence index has declined for three consecutive months. However, the index is still holding above 90. The index was last above 90 in mid-2007. Higher consumer confidence bodes well for vehicle sales.
Higher consumer confidence is positive for the consumer appliance industry also. And, copper is widely used in the manufacture of electrical appliance equipment.
In the next part of our series, we’ll analyze the latest trends in European copper demand.
Continue to Part 10 Browse this series on Market Realist:
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Freeport McMoRan Copper and Gold Inc.
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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 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$ 69.5 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 23, 2024 at US$ 47.99. Freeport McMoran has 1 448 000 000 shares outstanding. |