| What’s Driving Freeport-McMoRan to Multi-Year Lows? | |
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Why Is Copper Falling to New 2015 Lows? Multi-year lows
It hasn’t been this challenging for commodities since the great recession of 2008–2009. While copper and aluminum are still above their 2009 lows, spot steel prices in the United States have already reached their 2009 lows. Nickel has been among the worst performers, and it’s trading near 12-year lows. However, the biggest challenge is the correction in Chinese steel prices, which are now trading at the lowest levels in more than two decades.
The PowerShares DB Base Metals ETF (DBB) invests in a portfolio of commodities. It has lost ~21% year-to-date.
Shares tumble
When commodities trade at multi-year lows, commodity stocks can’t be far behind. Freeport-McMoRan (FCX) closed at $8.10 on November 24. Although Freeport-McMoRan is marginally above its 2015 lows, it’s still down 65% year-to-date. Teck Resources (TCK) hasn’t performed any better. It’s lost 68% of its market capitalization this year. Read Freeport-McMoRan: Why the Current Rally Could be Unsustainable to learn about FCX’s long-term drivers.
Southern Copper (SCCO) and Turquoise Hill Resources (TRQ) have been better off, losing 8% and 10%, respectively, this year. Read Southern Copper: A Business Overview of a Copper Giant to learn more about SCCO.
Second leg of correction
While commodity prices have been weak for most of the year, the current correction has taken them to new 2015 lows. In this series, we’ll explore the factors driving copper prices lower. We’ll also look at the copper industry’s recent demand and supply dynamics. This should help you understand what direction copper and copper producers could take.
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VanEck Vectors Global Alternative Energy ETF
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PRODUCER |
CODE : FCX |
ISIN : US35671D8570 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Freeport McMoran is a copper and gold producing company based in United states of america. Freeport McMoran produces copper, gold, cobalt, molybdenum and silver in Chile, in Congo Dem. Rep. of, in Indonesia and in Peru, develops copper in Peru, and holds various exploration projects in Chile. Its main assets in production are CANDELARIA, EL ABRA, CHINO - MILL, HENDERSON, MIAMI - ROM LEACH, MORENCI - MILL, OJOS DEL SALADO, MORENCI and MORENCI - ROM LEACH in Chile, GRASBERG, SIERRITA and BAGDAD in Indonesia, TENKE FUNGURUME and TYRONE in Congo Dem. Rep. of and CERRO VERDE in Peru, its main asset in development is SAFFORD in Peru and its main exploration properties are BAGDAD - ROM LEACH and CHINO - ROM LEACH in Peru and CERRO VERDE - MILL, CERRO VERDE - CRUSHED LEACH, CERRO VERDE - ROM LEACH, EL ABRA - ROM LEACH and CLIMAX in Chile. Freeport McMoran is listed in Germany and in United States of America. Its market capitalisation is 2.4 billions as of today (€ 2.1 billions). Its stock quote reached its lowest recent point on March 06, 2020 at 10.00, and its highest recent level on October 10, 2024 at 49.54. Freeport McMoran has 47 442 200 shares outstanding. |