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Key Indicators Freeport Investors Should Track (Part 7 of 17) (Continued from Part 6) Building sales in China
Copper is widely used in producing plumbing material, including taps, valves, and other bathroom fittings. Copper is also used in water pipes and fire sprinkler systems in commercial and residential buildings. Investors in copper products should track construction activity closely. Freeport-McMoRan (FCX), Teck Resources (TCK), BHP Billiton (BHP), and Glencore (GLNCY) are among the major copper producers. FCX currently forms 3.1% of the Materials Select Sector SPDR ETF (XLB) and 3.41% of the iShares US Basic Materials ETF (IYM).
Building sales fall
Building sales are widely tracked as an indicator of China’s real estate industry. The previous chart shows the year-over-year (or YoY) change in building sales in China. In February 2015, building sales fell by 15.8%. Building sales in China have fallen every month since February 2014, indicating a clearly downward trend for China’s real estate sector. This trend is also negative for the copper industry, since the real estate sector is among the major consumers of copper.
Prices fall
Property prices have also been weak in China. In February 2015, new home prices fell in 66 out of the 70 top Chinese cities. In January, prices had fallen in 64 cities. This decline in real estate prices is a negative indicator for China’s real estate industry, negatively impacting investor sentiments.
China’s real estate climate index has been below 100 for several months. This index was developed by China’s National Bureau of Statistics and measures the aggregate business activity for land and real estate. Figures above 100 indicate economic growth, while readings below 100 indicate a slowdown in China’s real estate market.
The automobile sector is another major consumer of copper. In the next article, we will discuss the latest trends in China’s automobile industry.
Continue to Part 8 Browse this series on Market Realist:
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VanEck Vectors Global Alternative Energy ETF
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PRODUCTEUR |
CODE : FCX |
ISIN : US35671D8570 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Freeport McMoran est une société de production minière de cuivre et d'or basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice de cuivre, d'or, d'argent, de cobalt et de molybdène au Chili, au Perou, en Indonesie et en Republique Democratique Du Congo, en développement de projets de cuivre au Perou, et détient divers projets d'exploration au Chili. Ses principaux projets en production sont CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI et MORENCI - ROM LEACH au Chili, GRASBERG, SIERRITA et BAGDAD en Indonesie, TENKE FUNGURUME et TYRONE en Republique Democratique Du Congo et CERRO VERDE au Perou, son principal projet en développement est SAFFORD au Perou et ses principaux projets en exploration sont BAGDAD - ROM LEACH et CHINO - ROM LEACH au Perou et CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH et CLIMAX au Chili. Freeport McMoran est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 2,2 milliards (1,9 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 , et son plus haut niveau récent le 19 septembre 2024 à 45,60 . Freeport McMoran possède 47 442 200 actions en circulation. |