COPX - Freeport McMoRan plunges with copper prices on global banking jitters

2023-03-15 15:26:31 ET

Freeport McMoRan ( NYSE: FCX ) -7.3% in Wednesday's trading as copper prices plunged alongside other commodities shaken by fresh banking sector concerns.

Front-month Comex copper ( HG1:COM ) for March delivery closed -3.8% to $3.8565/lb, its lowest settlement value since January 5.

Also: Southern Copper ( SCCO ), -8.3% , Teck Resources ( TECK ) -9% , Rio Tinto ( RIO ) -5.2% , BHP ( BHP ) -5.1% , Hudbay Minerals ( HBM ) -6.2% .

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

Copper prices are slightly more vulnerable to broader market concerns than other base metals because the red metal has enjoyed a relatively strong start to the year, according to Dan Smith, head of research at Amalgamated Metal Trading.

The short-term outlook for copper is "healthy," with global stockpiles trending lower and mine disruptions hitting supply from Latin America, Rio Tinto's head of copper Bold Baatar said this week.

Freeport McMoRan ( FCX ) makes sense as a long-term investment if you believe copper has a future, but "it is a tough call at the moment and totally subject to China re-opening for business," Fun Trading writes in an analysis posted recently on Seeking Alpha .

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