| Copper Prices Stage a Comeback: Is It Sustainable? | |
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Freeport-McMoRan: Why the Current Rally Could Be Unsustainable (Continued from Prior Part) Copper prices
On August 28, spot copper prices closed at $5,095 per metric ton in the LME (London Metals Exchange). Copper prices have recovered somewhat from their six-year low of $4888 per ton, which they hit on August 24. Nevertheless, spot copper prices are down ~20% since the beginning of 2015. You can see this trend in the chart below.
Aluminum has been a little better off this year, and spot aluminum fell ~13% in 2015 until it began to rise again on August 28. The benchmark seaborne iron ore contract has lost ~20% over this period. Iron ore fundamentals have been weak for quite some time now, driven by a slowdown in Chinese (FXI) demand, coupled with rising production from major miners including BHP Billiton (BHP), Rio Tinto (RIO), and Vale (VALE).
Freeport-McMoRan
Any sustainable recovery in Freeport-McMoRan (FCX) would depend on the movement in copper prices. In the global recession of 2008–2009, copper prices fell as low as $2,770 per metric ton. Back then, Freeport’s balance sheet was in a much better shape than it is today. We’ll explore Freeport’s financial strength to tackle the current downtrend in the coming parts of this series.
Meanwhile, there is a stark difference in the bloodbath in commodity prices in 2008–2009 and the downturn that we are witnessing now. Post-2009, Chinese demand led the way and commodity prices rose smartly over the next two years.
However, this time it’s the slowdown in China that’s leading to the downtrend in commodity prices.
The big question right now is how much lower copper prices could drift in the near future. We’ll discuss this in the next part of this series.
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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 73,1 milliards US$ (68,3 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 26 avril 2024 à 50,50 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |