• Connect with us
    • Information
      • About Us
      • Contact Us
      • Careers
      • Partnerships
      • Advertise With Us
      • Authors
      • Browse Topics
      • Events
      • Disclaimer
      • Privacy Policy
    • Australia
      North America
      World
    Login
    Investing News NetworkYour trusted source for investing success
    • North America
      Australia
      World
    • My INN
    Videos
    Companies
    Press Releases
    Private Placements
    SUBSCRIBE
    • Reports & Guides
      • Market Outlook Reports
      • Investing Guides
    • Button
    Resource
    • Precious Metals
    • Battery Metals
    • Base Metals
    • Energy
    • Critical Metals
    Tech
    Life Science
    Base Metals Market
    Base Metals News
    Base Metals Stocks
    • Base Metals Market
    • Base Metals News
    • Base Metals Stocks
    copper investing

    Copper Breaks Winning Streak, Analysts Unconcerned

    Vivien Diniz
    Aug. 15, 2013 04:45PM PST
    Base Metals Investing

    The United States’ indecision regarding the continuation of its economic stimulus program is once again succeeding in pushing down copper prices. However, analysts seem unconcerned by the activity.

    The United States’ indecision regarding the continuation of its economic stimulus program is once again succeeding in pushing down copper prices. However, analysts seem unconcerned by the activity. 

    “Copper is swimming either side of $7,300, and I don’t think today’s fall is meaningful. Clearly the pace of the rally of late last week was always going to slacken off. I’m not sure the world has changed that much.” Stephen Briggs, analyst with BNP Paribas told Reuters.

    Leading up to Thursday’s price drop, copper reached a  ten-week high as positive European growth data gave market players hope that industrial metal demand would be picking up in the short term. On Tuesday, the red metal climbed to $7,354.75 per tonne in London, gaining back roughly half of its losses for the year. Copper prices have closed for the day at $7,310 per tonne or $3.3375 on the Comex.

    Short-lived rally

    Last week when it seemed as though copper was finally breaking away from the lingering cloud of depressing global economic data, several analysts pipped up to caution that copper’s rally was going to be short-lived. According to some analysts, copper is just taking a slight detour on its way below $3 per pound.

    “What’s happened in the last few days is that the U.S. dollar has weakened substantially and we’ve seen some commodities come back because of that, in particular copper, (which) is a big beneficiary (of dollar weakness),” said Andrew Su, CEO at brokerage Compass Global Markets told CNBC on August 9.

    Jay Richards, investment manager at GTL Capital Management also echoed Su’s sentiment. “”We expected a little recovery before (copper) slides back to new lows,” he told CNBC.

    The pessimistic sentiment surrounding the copper price is not new. Back in May, Copper Investing News reported on a cautionary note to investors from Shanghai Cifco Futures, which outlined the anticipated downward trajectory of copper by the end of September. According to Shanghai Cifco’s technical analysis, investors should brace themselves for a drop that could potentially bottom out at $6,037.50. In it’s analysis, Shanghai Cifco expected that copper could rise in the short term to $7,600, before falling.

    Surprise one-day strike at Escondida 

    Workers at BHP’s (NYSE:BHP) Escondida copper mine in Chile embarked on a 24 hour strike over demands for an annual bonus and better working conditions.

    Marcelo Tapia, the union leader at Escondida told the Associated Press that workers threatened to extend the strike if their demands failed to be met. A meeting will be held on Friday to discuss any further action.

    “This could turn into an indefinite stoppage.” Tapia said. According to the Tapia, workers at the mine are expected to work shifts that extend beyond 12 hours.

    Rio sacks 1,700 workers

    Ongoing disputes with the Mongolia government has led Rio Tinto’s (ASX:RIO) decision to sack up to 1,700 workers at the underground Oyu Tolgoi copper and gold mine. The workers are mostly local.

    The disagreements between Rio and the government have been building up for some time, particularly given complaints of over-spending. Both Rio and the government have been unable to come to a conclusion about what share of the profit the government – a 34% partner in Oyu Tolgoi – should receive.

    Sam Walsh, chief executive of Rio told the Sydney Morning Herald “We need to work through some difficult issues together, I’m convinced that we are aligned with the government of Mongolia in finding the best way to take the project forward,” he said.

    Company news

    South American Silver (TSX:SAC,OTCQX:SOHAF) filed an updated NI 43-101 technical report for the Escalones copper-gold-silver project in Chile this week. The company has significantly increased its copper, gold and molybdenum resources, above the assumed economic 0.25 percent copper equivalent. The project has a indicated resource of 1.9 billion pounds of copper equivalent at a grade of 0.38 percent, as well as an inferred resource of 4.7 billion pounds of copper equivalent at a grade of 0.40 percent.

     

    Securities Disclosure: I, Vivien Diniz, hold no direct investment interest in any company mentioned in this article. 

    otcqx:sohafchilecopper investingsouth american silverasx:riotsx:sacbnp paribasunited states
    The Conversation (0)

    Go Deeper

    AI Powered

    Cormarck Securities Staying Bullish on Copper

    Copper Comes Off Two-week Lows, Outlook Remains Uncertain

    Latest News

    Strategic Option Secured Over Feather Cap Gold Project

    1,173 Soil Geochemistry Samples Completed

    Corcel Exploration Reports Historical Drill Results Ahead of Planned Phase I Drill Program

    Canada One Acquires 4,836 ha Copper-Gold Property Adjacent to Copper Mountain Mine

    Corcel Exploration Reports Historical Drill Results Ahead of Planned Phase I Drill Program

    More News

    Outlook Reports world

    Resource
    • Precious Metals
      • Gold
      • Silver
    • Battery Metals
      • Lithium
      • Cobalt
      • Graphite
    • Energy
      • Uranium
      • Oil and Gas
    • Base Metals
      • Copper
      • Nickel
      • Zinc
    • Critical Metals
      • Rare Earths
    • Industrial Metals
    • Agriculture
    Tech
      • Artificial Intelligence
      • Cybersecurity
      • Gaming
      • Cleantech
      • Emerging Tech
    Life Science
      • Biotech
      • Cannabis
      • Psychedelics
      • Pharmaceuticals

    Featured Base Metals Investing Stocks

    Canada One Mining

    CONE:CC

    African Discovery Group

    AFDG

    Copper Quest Exploration

    CQX:CC

    Empire Metals

    EPMLF

    Corazon Mining

    CZN:AU

    Blackstone Minerals

    BSX:AU
    More featured stocks

    Browse Companies

    Resource
    • Precious Metals
    • Battery Metals
    • Energy
    • Base Metals
    • Critical Metals
    Tech
    Life Science
    MARKETS
    COMMODITIES
    CURRENCIES