China shocker drops copper price to 6-year low
Frik Els | September 28, 2015
PeopleMine
Copper price hits six-year low It's not looking good
On Monday copper futures declined for the eight sessions in a row wiping out a supply-cut rally sparked by top producers Glencore and Freeport McMoRan at the start of the month.
On the Comex market in New York copper for delivery in December sagged more than 2% to a session low of $2.2320 or $4,920 a tonne– a more than six-year low – before recovering slightly in afternoon trade. The red metal's now down some 21% year to date after a 16% fall in 2014.
Copper's latest leg down came after data showed earnings by industrial companies in China, responsible for 45% of world copper consumption, tumbled by $24.6 billion or nearly 9% from a year earlier, with the largest drops in producers of coal, oil and metals. It was the biggest decline since 2011 when the Chinese National Bureau of Statistics first started to gather the data.
If major commodity prices remain at current levels nearly all the equity value of both Glencore and Anglo American could evaporate
The world's third largest copper miner Glencore's (LON:GLEN) stock was crushed falling by more than 30% in London to trade at a record low. The $21 billion company is now worth less than a fifth of its value since May 2011 when its shares were first publicly floated. The Swiss mining and trading giant relies on copper for 38% of its earnings (vs some 20% at BHP Billiton and only half that at Rio Tinto) so it has a lot riding on the outlook for the red metal.
Anglo American (LON:AAL) shares slid 10% in New York bringing year to date declines to more than 53%. Anglo American and Glencore were the subject of a devastating research note by investment bank Investec in London which argued that due to unsustainable debt loads "if major commodity prices remain at current levels, our analysis implies that, in the absence of substantial restructuring, nearly all the equity value of both Glencore and Anglo American could evaporate."
Freeport-McMoRan (NYSE:FCX), which vies with Chile's state-owned Codelco as the world number one copper miner in terms of output and is also a substantial gold producer, was trading 10.1% down in early-afternoon dealings with more than 36 million shares in the owner of the giant Grasberg mine in Indonesia exchanging hands. After a brief rally earlier this month evaporated, the Phoenix Arizona based company is now down 61% since the start of the year.
Frik Els | September 28, 2015
PeopleMine
Copper price hits six-year low It's not looking good
On Monday copper futures declined for the eight sessions in a row wiping out a supply-cut rally sparked by top producers Glencore and Freeport McMoRan at the start of the month.
On the Comex market in New York copper for delivery in December sagged more than 2% to a session low of $2.2320 or $4,920 a tonne– a more than six-year low – before recovering slightly in afternoon trade. The red metal's now down some 21% year to date after a 16% fall in 2014.
Copper's latest leg down came after data showed earnings by industrial companies in China, responsible for 45% of world copper consumption, tumbled by $24.6 billion or nearly 9% from a year earlier, with the largest drops in producers of coal, oil and metals. It was the biggest decline since 2011 when the Chinese National Bureau of Statistics first started to gather the data.
If major commodity prices remain at current levels nearly all the equity value of both Glencore and Anglo American could evaporate
The world's third largest copper miner Glencore's (LON:GLEN) stock was crushed falling by more than 30% in London to trade at a record low. The $21 billion company is now worth less than a fifth of its value since May 2011 when its shares were first publicly floated. The Swiss mining and trading giant relies on copper for 38% of its earnings (vs some 20% at BHP Billiton and only half that at Rio Tinto) so it has a lot riding on the outlook for the red metal.
Anglo American (LON:AAL) shares slid 10% in New York bringing year to date declines to more than 53%. Anglo American and Glencore were the subject of a devastating research note by investment bank Investec in London which argued that due to unsustainable debt loads "if major commodity prices remain at current levels, our analysis implies that, in the absence of substantial restructuring, nearly all the equity value of both Glencore and Anglo American could evaporate."
Freeport-McMoRan (NYSE:FCX), which vies with Chile's state-owned Codelco as the world number one copper miner in terms of output and is also a substantial gold producer, was trading 10.1% down in early-afternoon dealings with more than 36 million shares in the owner of the giant Grasberg mine in Indonesia exchanging hands. After a brief rally earlier this month evaporated, the Phoenix Arizona based company is now down 61% since the start of the year.
I'm in it to win it!
NASDAQ DIP and RIP
Here is the best word that describes what i do here.
Intuitive;
means having the ability to understand or know something without any direct evidence or reasoning process.
I was born with it, I'm truly blessed!
Alway's searching for winners'
NASDAQ DIP and RIP
Here is the best word that describes what i do here.
Intuitive;
means having the ability to understand or know something without any direct evidence or reasoning process.
I was born with it, I'm truly blessed!
Alway's searching for winners'
