Freeport McMoRan (NYSE:FCX) +4.5% pre-market as prices for copper and other industrial metals prices rebounded on Monday, a move analysts see as a “bear market bounce.”
According to Reuters, London Metal Exchange benchmark copper (HG1:COM) +2.7% to $7,385/metric ton after dropping below $7K/ton in the previous session, its lowest since November 2020.
ETFs: (NYSEARCA:COPX), (CPER), (JJC), (JJCTF)
Big three base metals are all indicated higher in pre-market trading: (RIO) +3.1%, (BHP) +2.9%, (VALE) +2.8%.
Other potentially relevant stock tickers include (SCCO), (TECK), (HBM), (OTCQX:AAUKF), (OTCQX:NGLOY), (OTCPK:GLNCY), (OTCPK:GLCNF), (OTCQX:FSUMF)
Analysts say the copper market was increasingly oversold, and short sellers found an excuse to cover their shorts as Chinese regulators encouraged lenders to extend loans to qualified real estate projects in an effort to boost the country’s battered property sector.
The copper price also was helped by news that the Tenke Fungurume mine in Democratic Republic of Congo had suspended all exports, complying with an order from a court-appointed administrator.
LME aluminum, zinc, nickel, lead and tin were all higher in recent trading.
Saying the surging U.S. dollar will weigh on copper until macroeconomic risks subside, longtime copper bulls at Goldman Sachs last week forecast the metal will drop to $6,700/ton in the next three months.