| Why Freeport Investors Should Track China’s Automobile Industry | |
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Key Indicators Freeport Investors Should Track (Part 8 of 17) (Continued from Part 7) China’s automobile industry
China is the world’s biggest automotive market, where close to 22 million vehicles are sold each year. Copper is highly durable and can be cast into precision shapes. This malleability makes copper and its alloys ideal for making gears and bearings. Copper radiators, motors, brakes, and bearings are used in the automobile industry, with about 50 pounds of copper content in an average mid-sized vehicle.
Uneven car sales
The above chart shows the passenger car sales growth rate in China. Sales grew by 6.44% on a year-over-year (or YoY) basis in the latest reading in February. Sales had increased by an impressive 10.55% in January. The trend in vehicle sales has been quite uneven. China’s automotive sector continues to grow, albeit at a much slower pace over the previous years.
Investors in companies like Freeport-McMoRan (FCX), Teck Resources (TCK), and Alcoa (AA) should closely track China’s automobile industry. FCX currently forms 3.1% of the Materials Select Sector SPDR ETF (XLB), and 3.25% of the SPDR S&P Metals and Mining ETF (XME).
Disposable income
China’s improving disposable income is positive for passenger car sales. With higher income, the consumption of products like automobiles and electric appliances go up. This bodes well for the consumption of all metals.
The manufacturing sector is another major consumer of copper. Due to its corrosion resistance, copper is also used in making tanks, vessels, and pipes that are exposed to seawater. As copper is a good conductor of electricity, it is used in making power cables, motors, transformers, and other electrical equipment. It is also widely used in producing renewable energy production systems.
In the next part, we will discuss the latest trends in China’s manufacturing PMI.
Continue to Part 9 Browse this series on Market Realist:
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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. |