CSCCF - Freeport McMoRan base metals miners slide as copper pulls back

2023-06-23 15:33:49 ET

Freeport McMoRan ( NYSE: FCX ) -3.4% in Friday's trading, making it one of the worst performing stocks on the S&P 500, as copper prices fell on concerns over global economic growth.

Copper and other growth-dependent commodities have been weighed this week by a burst of aggressive central bank rate hikes in the U.K. and elsewhere, U.S. Federal Reserve Chair Jerome Powell's belief that the FOMC is not yet finished raising rates, and other worrying data such as a measure of German factory activity that showed its weakest reading since the early days of the COVID pandemic.

Front-month Comex copper ( HG1:COM ) for June delivery settled -2.1% on Friday to $3.806/lb, its fourth loss in five trading sessions after rising for three straight weeks, and down 10.8% from its 2023 settlement high of $4.267 on January 26.

ETFs: ( NYSEARCA: COPX ), ( CPER ), ( JJC ), ( JJCTF )

Other relevant stocks trading lower include Southern Copper ( SCCO ) -3.3% , Teck Resources ( TECK ) -3.8% , Hudbay Minerals ( HBM ) -5.1% , BHP ( BHP ) -2.5% , Rio Tinto ( RIO ) -2.3% , Ero Copper ( ERO ) -1.6% , Capstone Copper ( OTCPK:CSCCF ) -5% , Lundin Mining ( OTCPK:LUNMF ) -3.8% , First Quantum Minerals ( OTCPK:FQVLF ) -2.4% .

Copper prices fell even as stockpiles in warehouses registered by the London Metal Exchange continued to decline, with headline inventory falling to a one-month low 79.3K metric tons.

More on Freeport McMoRan:

• Financial and valuation comparison to sector peers
• Analysis: Freeport McMoRan: Declining Free Cash Flow Spells Trouble
• Stock price return: Up 5% YTD, up 31.5% in the past 12 months

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