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Copper and the Economy: What Should Investors Watch? (Continued from Prior Part) London Metal Exchange copper inventory
We’ve already seen how the copper inventory in China declined significantly in April. In this part, we’ll look at the recent trend in the London Metal Exchange (LME) copper inventory. Copper is among the most widely traded metals on the LME. Both copper and aluminum have financial demand apart from the real demand from end users.
Inventory stable
The above chart shows the trend in on-warrant LME copper inventory. As you can see, it was quite steady in April. However, LME copper inventory is up more than 65% since the start of the year.
An increase in LME copper inventory is an indication that copper’s supply continues to be more than its demand. The demand-supply mismatch puts pressure on copper prices. Copper prices are currently trading at their 2015 highs. Leading brokerages have also increased copper price expectations for next year. However, copper’s demand needs to pick up in order to keep pace with additional supply that’s hitting the market.
2015 guidance
BHP Billiton (BBL) has reduced its copper production guidance for 2015. The company was negatively impacted by heavy rainfall in Chile earlier this year. It also faced an outage at its Olympic Dam mine in January.
Rio Tinto (RIO) has meanwhile maintained its refined copper production guidance of 190–220 thousand tons for 2015.
Copper demand indicators in Europe have been positive. The Eurozone PMI (Purchasing Mangers Index) has held above 50 for almost two years. Vehicle sales in Europe have also been strong. This bodes well for copper demand in Europe.
Freeport (FCX) gets a major portion of its revenues from US markets (IVV) (SPY). In the next part, we’ll analyze how copper demand is shaping up in the United States.
Continue to Prior Part 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. |