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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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McEwen Mining
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PRODUCER |
CODE : MUX |
ISIN : US58039P1075 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
McEwen Mining is a gold development stage company based in Canada. McEwen Mining produces gold, silver in Argentina and in Mexico, develops gold and silver in Mexico, and holds various exploration projects in Mexico. Its main assets in production are MAGISTRAL MINE in Mexico and SAN JOSE ARGENTINA in Argentina, its main asset in development is EL GALLO MEXICO in Mexico and its main exploration properties are PALMARITO, GOLD PICK AND GOLD RIDGE, TONKIN PROJECT and MAGISTRAL in Mexico and LOS AZULES ARGENTINA and LIMO in Argentina. McEwen Mining is listed in Canada, in Germany and in United States of America. Its market capitalisation is US$ 3.8 billions as of today (€ 3.6 billions). Its stock quote reached its lowest recent point on July 29, 2022 at US$ 0.32, and its highest recent level on April 19, 2024 at US$ 11.22. McEwen Mining has 337 054 594 shares outstanding. |