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Key Indicators Freeport Investors Should Track (Part 6 of 17) (Continued from Part 5) China’s copper industry
We explored a key reason behind the growth in the Chinese economy—government support. Because housing and infrastructure sectors are key drivers of economic growth, China made significant investments in this space. To support economic growth, the Chinese government built massive cities, now known as ghost cities.
What are these ghost cities?
The images above illustrate China’s ghost cities. There are buildings and roads—but no people, a surprising phenomenon in a country of 1.4 billion people. Many of these cities were created to boost the local economies.
The real estate sector has a trickle-down effect on a country’s economy, benefiting the metals, cement, and construction industries. Because these industries have intensive employment needs, China was able to provide employment opportunities to its citizens through these infrastructure investments. A strong housing market benefits companies like Freeport-McMoRan (FCX), Glencore (GLNCY), Teck Resources (TCK), and Southern Copper (SCCO). Freeport currently forms 3.1% of the Materials Select Sector SPDR ETF (XLB).
Ghostly cause of concern
China’s ghost cities are covered with unoccupied buildings, which represents a kind of excess inventory in its main cities. The excess housing inventory puts pressure on the real estate market, and real estate prices in China have dropped over the last several quarters. The huge unsold inventory could be a possible reason behind this.
The Chinese real estate industry has slowed down considerably over the last few quarters. This slowdown has negatively impacted the demand for steel and copper. In the next article, we will discuss the latest indicators of the Chinese real estate industry.
Continue to Part 7 Browse this series on Market Realist:
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Freeport McMoRan Copper and Gold Inc.
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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 d'or et de cuivre basée aux Etats-Unis D'Amerique. Freeport McMoran est productrice d'or, de cuivre, 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 72,7 milliards US$ (67,9 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 26 avril 2024 à 50,18 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |