| Copper Prices Hold at $4,500 amid Commodity Meltdown | |
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Freeport-McMoRan Is Sinking Lower in an Already Dismal Year (Continued from Prior Part) Copper prices
Copper has been on a downtrend for nearly two months. The goodwill generated by supply cuts by major miners (XME) such as Freeport-McMoRan (FCX) and Glencore (GLNCY) failed to last beyond a month, and copper again resumed its downtrend.
It’s important to note that there’s no industrywide coordinated effort to cut copper supplies. Producers such as BHP Billiton (BHP), Rio Tinto (RIO), and Southern Copper (SCCO) are going ahead with their pre-planned production programs. These companies are also not holding back on their expansion plans.
You can read Why Have Copper Production Cuts Failed to Have a Material Impact? to explore why the production cuts failed to lift copper prices for long.
Copper holds at $4,500
Copper has managed to hold on to the psychologically crucial $4,500 level. The LME (London Metals Exchange) three-month copper contract closed at $4,567 on December 8, down ~0.7% from its previous day’s close. Last week, copper ended its seven-week losing streak and closed with marginal gains. Nonetheless, copper is still down by more than a quarter this year.
Outlook for copper
According to Citi, copper is “oversold,” citing the huge short buildup. There were reports a few days ago that the copper supply from Chile could be negatively impacted due to the drought in that country. However, such news has failed to deter copper bears who have continued to short copper. Shorting copper has become a proxy on the Chinese slowdown.
Economic data points from China have also not disappointed copper bears. Earlier this month, the official Chinese PMI (Purchasing Managers’ Index) fell to a three-year low. Now Chinese trade data have provided another reason to cheer for traders who hold bearish views on copper.
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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 2,1 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 18 septembre 2024 à 43,92 . Freeport McMoran possède 47 442 200 actions en circulation. |