Freeport McMoRan (NYSE:FCX) -6.4% in Thursday’s trading, plunging to a 16-month low, mirroring losses in copper as rapidly rising interest rates and weak economic data spark worries of a global slowdown that would cut demand for metals.
Comex July copper (HG1:COM) -4.4% to $3.771/lb, the lowest since February 2021, dragging the Global X Copper Miners ETF (NYSEARCA:COPX) down more than 5% to cap its biggest two-day decline since March 2020.
Also: (OTCPK:FQVLF) -11.8%, (OTCPK:SLGGF) -10.3%, (TECK) -8.3%, (ERO) -7.8%, (OTCPK:LUNMF) -7.5%, (OTCPK:CPPMF) -7%, (BVN) -7%, (HBM) -6.9%, (SCCO) -5.3%, (CPER) -4.3%.
The macroeconomic backdrop for the industrial metals sector has deteriorated, Morgan Stanley analysts say, as central banks ratchet rates higher to fight inflation and China’s zero-COVID policy slows demand for copper and other industrial metals.
Analysts at RBC Capital said recently that they expect global copper supply will outpace demand over the next two years.
