Copper 02 (Nov 12 - Dec 25)

Re: Copper 02 (Nov 12 - Dec 16)

Postby winston » Tue Nov 22, 2016 2:57 pm

Is Copper Rally Over?

By Shuli Ren

There are quite a few headwinds that copper prices face.

First, the U.S. dollar has “an outsized effect on the metals complex, particularly copper.”.

“A strengthening dollar lowers costs for ex-USA producers and has acted as a key driver of lowering the cost curve for copper and iron ore.”

Second, China’s copper inventories start to climb again this month.

“If this trend continues, the rundown in China’s copper inventories may be reversing itself, a bearish signal for prices.” (See chart)


Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... ally-over/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Copper 02 (Nov 12 - Dec 16)

Postby winston » Fri Nov 25, 2016 7:57 pm

Minerals Powerhouse: Zambia

Zambia is one of the fastest-growing economies in the world; it's among a quarter of African countries that grew by more than 7% in 2012. And it's also very rich in minerals. Copper and cobalt are the key commodities produced there.

The country is ranked as the world's seventh largest producer of copper, generating 3.3% of the world's production, and the world's second largest producer of cobalt at 19.7%.

The Zambian copper belt, which is situated between Zambia and the Democratic Republic of Congo, is one of the richest in the world, as it contains the world's highest-grade copper and cobalt deposits. This copper belt remains the focus of mining and development activities.

According to mines minister Christopher Yaluma, Zambia's copper production will double in 2017. Copper output is consistently growing, even as the industry faced tax changes, falling prices and an acute power deficit in 2015. This will put the sub-Saharan country among the top five biggest copper producers globally going forward.

In addition, Zambia's coal industry is viewed as a key growth sector. Coal output is forecasted to experience rapid growth in 2017, increasing by 611% from 2012.

For two decades, Zambia's mining sector has experienced major foreign interest and investment driven mainly by the privatization of state-owned copper mines, a low tax environment, and low political intervention.

Being a landlocked country creates massive opportunities for investment in electricity supplies and transport routes. Over the past five years, Zambia has witnessed more than $8.0 billion of investment and, considering forecasted growth in both copper and coal production, Zambia is set to gain a competitive advantage over other African nations.

The best way to invest in Zambia is through an ETF that has exposure to a broad range of copper mining companies, such as the Global X Copper Miners ETF (NYSE Arca: COPX), with a return of about 19% over the past year.

Source: Money Morning
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Copper 02 (Nov 12 - Dec 16)

Postby behappyalways » Mon Nov 28, 2016 2:40 pm

血要热 头脑要冷 骨头要硬
behappyalways
Millionaire Boss
 
Posts: 39914
Joined: Wed Oct 15, 2008 4:43 pm

Re: Copper 02 (Nov 12 - Dec 16)

Postby winston » Tue Jan 24, 2017 8:57 am

Commodities Rally Makes This Trade Great Again

by JAY SOLOFF

Given the strength of the economy, there are plenty of reasons to believe copper will be in higher demand once again.

What’s more, as long as infrastructure spending is in the public discourse, copper prices will reflect an expected increase in demand at some point.


Source: Investor's Alley

http://www.investorsalley.com/commoditi ... eat-again/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Copper 02 (Nov 12 - Dec 16)

Postby winston » Thu Jan 26, 2017 6:53 pm

Copper is essential in the electrical, construction and industrial machinery sectors.

In 2015, the U.S. imported 756,000 metric tons of refined copper and exported only 95,000 metric tons, according to the Department of the Interior and the U.S. Geological Survey.

Source: Bloomberg
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Copper 02 (Nov 12 - Dec 17)

Postby winston » Thu Feb 09, 2017 1:08 pm

Citi Is Bullish On Copper

By Shuli Ren

Copper is one of Citi Research‘s favorite industrial metals, because in 2017, we are likely to see copper’s first supply deficit since 2011.

Analyst Ada Gao and team wrote:

In 2016, Chinese copper demand grew strongly at 3-7%, compared to consensus expectations of 1-2% at the start of the year. Looking forward, we see demand slightly moderating, but to a still-solid 3-4%.

Mine supply is expected to slow notably, from 3.2%YoY in 2016E to 1.1% in 2017E, thus creating the first supply deficit since 2011.

On our forecasts, copper prices will US$2.53/2.76/3.03 per lb in 2017/18/19E, respectively, or US$5,575/6,075/6,675 in US$/t terms.

Overnight, copper rose 1.7% to $5,895 per ton.

Of the Chinese miners, MMG (1208.Hong Kong) is Citi Research’s top pick, because it is the purest copper miner with 83% of its revenue from copper mines. Citi estimates that for every 5% rise in copper prices, MMG’s earnings can rise by 27.9%.

By comparison, China Moly (3993.Hong Kong) and Jiangxi Copper (358.Hong Kong) get only 13.7% and 13.8% lift. Zijin Mining (2899.Hong Kong) gets 5.2% boost only. (See chart)

Citi has a price target of 3.60 Hong Kong dollars for MMG. This stock soared 4.7% today to HK$2.89. Citi’s price target implies an up-cycle of 2.5 times 2017 book. MMG currently trades just above 1.7 times book, or its long-term average.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... on-copper/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Copper 02 (Nov 12 - Dec 17)

Postby winston » Thu Feb 09, 2017 7:58 pm

Copper Jolted Higher as Threatened Disruptions Point to Deficit

by James Poole and Susanne Barton

“We expect copper will move into deficit in the coming months, driving the next leg higher in prices”


Copper has surged by more than 25 percent in the past year amid sustained demand from China and the anticipation of higher infrastructure spending and tax cuts from U.S. President Donald Trump.

Prospects for supply disruptions at BHP Billiton Ltd.’s Escondida in Chile and Freeport-McMoRan Inc.’s Grasberg in Indonesia increase the potential for prices to continue rising.


Source: Bloomberg

http://finance.yahoo.com/m/a8877e6c-fcb ... er-as.html
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Copper 02 (Nov 12 - Dec 17)

Postby winston » Mon Feb 13, 2017 2:35 pm

Upside in Copper Is Probably Limited

By CARLEY GARNER

Large commodity speculators have been generally net short the copper market overall since mid-2012. Until late 2016 and early 2017, any net long position held by copper specs had been unsustainable, but this time around they've not only managed to buy and hold their positions but they've also amassed what could be considered an overcrowded trade.


Prices are bumping up against a few trendlines in the low $2.70s and will face additional technical resistance in the mid-$2.80s and again in the mid-$2.90s.


Source: Real Money

http://realmoney.thestreet.com/articles ... yptr=yahoo
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Copper 02 (Nov 12 - Dec 17)

Postby winston » Tue Feb 21, 2017 8:03 am

China will help drive 33% increase in global copper prices by 2020: Citi

by Huileng Tan

Alongside recovering Chinese demand, Citi Research projected supply to move into deficit in 2017 for the first time in six years.

"Copper supply set to under-perform demand for much of the next half decade. As the global economy departs from several years of stagnation, so too does the outlook for copper pricing.

The combination of stronger than expected Chinese demand, a clear lack of visible copper inventory build, an end to cost deflation, and the U.S.-centric reflation story after the Trump election victory sparked positive price momentum through the latter stages of 2016," wrote Citi analysts.


For 2017, Citi said it expects Chinese copper demand to moderate to between 3 to 4 percent, driven by power grid improvement plans and vehicle sales.


Source: CNBC.com

http://www.cnbc.com/2017/02/19/china-wi ... CKW,K5FK,1
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Copper 02 (Nov 12 - Dec 17)

Postby winston » Thu Mar 16, 2017 6:14 pm

Mining companies have dug themselves out of a hole

Electric vehicles and batteries are expected to create huge demand for copper and cobalt

Glencore could still acquire a halo for itself. It is one of the world’s biggest suppliers of copper and the biggest of cobalt, much of which comes from its investment in the DRC.

These are vital ingredients for clean-tech products and industries, notably electric vehicles (EVs) and batteries.


In 2014-15 the four biggest London-listed miners—BHP Billiton, Rio Tinto, Glencore and Anglo American—lost almost $20bn of core earnings, or EBITDA, as commodities plunged.


Recent results show that the four biggest firms not only swung from huge losses to profits but also cut net debt by almost $25bn in 2016. BHP and Rio made unexpectedly large payouts to shareholders.


A recent surge in the prices of battery ingredients, such as copper, cobalt and lithium, has added to the excitement. China, the world’s biggest manufacturer of EVs, is gobbling up supplies.


By one estimate, it takes at least 30 years to go from finding copper deposits to producing the metal from them at scale.


Source: The Economist

http://www.economist.com/news/business/ ... rsc=dg%7Ce
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

PreviousNext

Return to Commodities

Who is online

Users browsing this forum: No registered users and 3 guests