| How China’s Real Estate Market Drives the Global Copper Industry | |
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Key Indicators Freeport Investors Should Track (Part 5 of 17) (Continued from Part 4) China’s real estate market
We previously discussed how the Chinese government has given its support to its domestic copper industry. The Chinese real estate market also played its part in the country’s growth in copper consumption. In this article, we will look at various factors that drove the Chinese real estate industry.
Urbanization
China has a population that is almost four times that of the US population, outnumbering the United States ~1.39 billion to 320 million. The population was largely based in villages until China opened up its economy in the late 1970s. China soon became an export powerhouse, manufacturing everything from toys to trains. This economic shift enticed a large population of workers to leave their villages to seek employment in upcoming urban industries.
The net result of this population shift is that more than half of China currently lives in cities, compared to around 10% in 1949. There was a huge population that wanted to upgrade from their long-time substandard living, and the country’s rapid urbanization gave them this opportunity. China’s housing market got a boost from this urbanization, and the per capita copper consumption in China soared as a result.
Major market for global players
China has become a major market for global mining giants like Rio Tinto (RIO). As shown in the above chart, Rio Tinto now gets 35% of its revenues from China, as compared to only 8% in 2003. Other major producers like Freeport-McMoRan (FCX), Teck Resources (TCK), Glencore (GLNCY), and Vale (VALE) also benefit from the higher demand from China. Glencore currently forms 2.82% of the iShares Global Materials ETF (MXI). Freeport currently forms 3.1% of the Materials Select Sector SPDR ETF (XLB).
Along with this demand from end users, a great deal of speculative money also found its way into China’s real estate markets. This is one of the reasons behind the current slowdown in its economy. We will discuss this phenomenon in detail in our next article.
Continue to Part 6 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 69,9 milliards US$ (65,2 milliards €). La valeur de son action a atteint son plus bas niveau récent le 06 mars 2020 à 10,00 US$, et son plus haut niveau récent le 24 avril 2024 à 48,24 US$. Freeport McMoran possède 1 448 000 000 actions en circulation. |