Copper slips on China demand concerns with COVID-19 cases rising again (NYSE:FCX)

Copper slips on China demand concerns with COVID-19 cases rising again (NYSE:FCX)

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Copper mining stocks including Freeport McMoRan (FCX -5.4%) tumble into the red as the metal -2.4% to $4.51/lb in Nymex trading (HG1:COM) due to declining demand in China, which is imposing new COVID-19 restrictions.

ETFs: COPX, CPER, JJCTF, JJC

A new report from Capital Economics sees weakness ahead amid a gloomier demand backdrop, particularly in China, which is responsible for more than half the world’s copper consumption.

Capital Economics cut its 2022 growth forecasts for China as the country copes with the highest COVID-19 numbers since the start of the pandemic and no indications the country is dropping its zero-COVID policy, as well as higher import bills as oil trades above $100/bbl and higher inflation brought on by the spiking cost of agricultural commodities.

“Conditions in the copper market look encouraging, [but] the relative risk-reward and the valuation picture of COPX ETF are not too appealing,” The Alpha Sieve writes in an analysis posted recently on Seeking Alpha.

Originally Posted on: https://seekingalpha.com/news/3813244-copper-slips-on-china-demand-concerns-with-covid-19-cases-rising-again?source=feed_tag_commodities
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