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Copper and the Economy: What Should Investors Watch? (Continued from Prior Part) US copper demand
We’ve already looked at the recent indicators of the Chinese copper industry. In this part, we’ll analyze how US copper demand is shaping up. Thompson Creek Metals (TC) gets a major portion of its revenues from US markets (VTI). The iShares North American Natural Resources ETF (IGE) has invested in several energy and mining companies in the United States. Pan American Silver (PAAS) and Stillwater Mining (SWC) each forms ~0.8% of IGE.
Strong indicators
The above chart shows the trend in US vehicle sales. April vehicle sales increased 3% on a year-over-year basis to reach a seasonally adjusted annual rate (or SAAR) of 16.46 million units. However, sales declined compared to a SAAR of 17.05 million units in March.
Copper radiators, motors, brakes, and bearings are used in the automobile industry. According to estimates, copper content in an average mid-sized vehicle is around 50 pounds. Higher vehicle sales bode well for the US copper demand.
Higher construction spend
US construction spending has been on an uptrend. In the latest reading in March, total construction spending increased 2.2% on a year-over-year basis.
Copper is used widely to produce plumbing material. It’s used to make taps, valves, and other bathroom fittings. Copper is also used in water pipes and fire sprinkler systems in buildings. Higher construction spending is positive for copper demand.
While the real estate industry has been strong in the United States, the Chinese property market has slowed down. A slowdown in the Chinese real estate sector is negative for the global copper industry.
In the next part, we’ll see how the recent up-move in crude oil prices is impacting Freeport-McMoRan.
Continue to Prior Part Browse this series on Market Realist:
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Pan American Silver Corp.
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PRODUCTEUR |
CODE : PAAS |
ISIN : CA6979001089 |
CUSIP : 697900108 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Pan American Silver est une société de production minière d'argent basée au Canada. Pan American Silver est productrice d'argent, de cuivre, d'or, de plomb et de zinc au Mexique, au Perou, en Argentine et en Bolivie, en développement de projets d'argent et d'or au Mexique, et détient divers projets d'exploration au Mexique et en Argentine. Ses principaux projets en production sont QUIRUVILCA MINE, HUARON et MOROCOCHA au Perou, LA COLORADA, ALAMO DORADO, LLUVIA DE ORO et DOLORES MINE au Mexique, SAN VICENTE en Bolivie et MANANTIAL ESPEJO en Argentine, son principal projet en développement est LA PRECIOSA au Mexique et ses principaux projets en exploration sont ORO BLANCO, EL DURAZNO, SAN ANTONIO ORO BLANCO, SANTA LUCIA, REAL VIEJO, PLANCHAS DE PLATA, LA DURA, LA RESERVA / EL CORREO, LA VIRGINIA GOLD/SILVER, LA CRUZ et LA BOLSA au Mexique, FLAMINGO, ESPEJO, REGALO, NAVIDAD, CALCATREAU, HOG HEAVEN, WATERLOO et LOMA DE LA PLATA (NAVIDAD) en Argentine, RIVER VALLEY PGM au Canada et PICO MACHAY au Perou. Pan American Silver est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 2,9 milliards US$ (2,7 milliards €). La valeur de son action a atteint son plus bas niveau récent le 07 novembre 2008 à 10,01 US$, et son plus haut niveau récent le 25 avril 2024 à 18,97 US$. Pan American Silver possède 153 176 265 actions en circulation. |