Cliffs Natural Resources (NYSE:CLF) is a big gainer so far today on the news China imports of copper have risen.
Other copper producers like Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) also got a nice bump from the apparent boost in copper demand.
The March copper contract on the New York Mercantile Exchange, while off session highs, still soared six cents to $4.60. Since January 2010, copper prices have surged by almost 40 percent.
Copper prices had hit a record of $4.62 earlier in trading.
Cliffs was trading at $91.99, gaining $4.48, or 5.12 percent, as of 12:36 PM EST. Freeport-McMorRan was trading at $56.00, up $2.48, or 4.63 percent.
Showing posts with label China Copper. Show all posts
Showing posts with label China Copper. Show all posts
Monday, February 14, 2011
Tuesday, November 30, 2010
Copper Demand to Exceed Supply Through 2013 Says GFMS
A report from the GFMS entitled Quarterly Three-Year Copper Forecast, says the supply of copper won't be able to keep up with demand through 2013.
The report concludes copper prices will rise as the copper market continues to be tight throughout that period, although an expected slowdown in the first half of 2011 could result in a temporarily copper surplus.
While production would be expected to meet that growing demand because of plans to increase output, secondary factors such as labor problems, low-quality grades, political effects and other operational risks associated with the industry in general will probably temper the production growth and not allow it to reach desired levels.
Over the next three years refined production is estimated to increase by about 3.4 percent annually through 2013.
The result of all of this in relationship to copper price should be a continual rise in price, which could easily reach above $11,000 a ton in 2013, according to the report.
Even though China may cut back on commodity imports in general and copper imports specifically, they will still account for just under 66 percent of the increase in global copper consumption annually during the time period we're talking about.
Add to this this the growing interest by investors in copper and commodities, and there is sure to be an increased flow of money into the metal.
Bottom line is it seems copper producers and investors are in for a volatile but profitable ride over the next three years.
The report concludes copper prices will rise as the copper market continues to be tight throughout that period, although an expected slowdown in the first half of 2011 could result in a temporarily copper surplus.
While production would be expected to meet that growing demand because of plans to increase output, secondary factors such as labor problems, low-quality grades, political effects and other operational risks associated with the industry in general will probably temper the production growth and not allow it to reach desired levels.
Over the next three years refined production is estimated to increase by about 3.4 percent annually through 2013.
The result of all of this in relationship to copper price should be a continual rise in price, which could easily reach above $11,000 a ton in 2013, according to the report.
Even though China may cut back on commodity imports in general and copper imports specifically, they will still account for just under 66 percent of the increase in global copper consumption annually during the time period we're talking about.
Add to this this the growing interest by investors in copper and commodities, and there is sure to be an increased flow of money into the metal.
Bottom line is it seems copper producers and investors are in for a volatile but profitable ride over the next three years.
Tuesday, November 23, 2010
Freeport (NYSE:FCX), BHP (NYSE:BHP), Teck (NYSE:TCK), Southern Copper(NYSE:SCCO) Plunge on Falling Copper Prices
Copper prices have plummeted today, dragging down heavily-exposed copper companies like Freeport-McMoran (NYSE:FCX), BHP Billiton (NYSE:BHP), Teck Resources (NYSE:TCK) and Southern Copper(NYSE:SCCO).
Much of this was precipitated by the weakening euro versus the U.S. dollar, as the dollar index rose early in the trading session.
There is also the continuing uncertainty as to the demand which will come from China, as it's certain it'll fall from previous estimates as China battles inflationary pressures. Copper demand will remain strong, but not as strong as expected, which will weaken results going forward.
Refined copper imports for China plunged by 30 percent to 169.897 metric tons in October, the lowest level in the last 12 months. Strong domestic supply and higher global prices were the reason behind that fall in demand.
An ongoing weak U.S. housing market is also dragging on the market, and all of these factors aren't going to change any time soon, other than the U.S. dollar, which will continue to be pushed down in value because of the misguided policies of Ben Bernanke and the Federal Reserve.
Freeport was trading at $98.42, falling $3.59, or 3.52 percent at 2:10 PM EST. Tech Resources was at $47.96, dropping by $2.09, or 4.18 percent. Southern Copper fell to $41.97, losing $2.32, or 5.24 percent. BHP Billiton was trading down to $83.27, declining by $3.31, or 3.82 percent.
Much of this was precipitated by the weakening euro versus the U.S. dollar, as the dollar index rose early in the trading session.
There is also the continuing uncertainty as to the demand which will come from China, as it's certain it'll fall from previous estimates as China battles inflationary pressures. Copper demand will remain strong, but not as strong as expected, which will weaken results going forward.
Refined copper imports for China plunged by 30 percent to 169.897 metric tons in October, the lowest level in the last 12 months. Strong domestic supply and higher global prices were the reason behind that fall in demand.
An ongoing weak U.S. housing market is also dragging on the market, and all of these factors aren't going to change any time soon, other than the U.S. dollar, which will continue to be pushed down in value because of the misguided policies of Ben Bernanke and the Federal Reserve.
Freeport was trading at $98.42, falling $3.59, or 3.52 percent at 2:10 PM EST. Tech Resources was at $47.96, dropping by $2.09, or 4.18 percent. Southern Copper fell to $41.97, losing $2.32, or 5.24 percent. BHP Billiton was trading down to $83.27, declining by $3.31, or 3.82 percent.
Subscribe to:
Posts (Atom)