Copper 02 (Nov 12 - Dec 25)

[winston]

Copper Set for Second Weekly Gain on Mine Supply Concern, China
By Jae Hur

Copper headed for a second weekly advance on concern that supplies from global mines will trail forecasts and amid speculation demand may increase in China, the biggest user of industrial metals.

The metal is down 5.9 percent this month, set for the biggest such drop since June.

Freeport-McMoRan Copper & Gold Inc. (FCX) is producing at about 50 percent of capacity at Indonesia’s Grasberg, the world’s second-biggest copper mine.

A company controlled by Rio Tinto Group cut its forecast for output from Mongolia’s Oyu Tolgoi.

Copper has declined 10 percent this quarter, heading for the first such loss since the period ended in June.

“Recent reports of lower mine output lent support to copper amid expectations for a pick-up in demand from China in coming months,” said Hwang Il Doo, a senior metals trader at Korea Exchange Bank Futures Co. in Seoul.

Demand in China is starting to emerge from industries including construction and power, and some fabricators are considering buying more copper due to increased orders and lower prices, according to a survey by Macquarie Group Ltd.

Source: Bloomberg

[winston]

"Trophy" copper producer Freeport-McMoRan is working on a new uptrend… shares surge to a three-month high.

[winston]

Copper is trying to start a new uptrend… prices break out to a two-month high.

[winston]

"Trophy" copper miner Freeport-McMoRan breaks out to a new three-month high… up 16% in the past two months.

[winston]

Copper Set for 2nd Weekly Loss on Metal Warehousing Probe By Jae Hur

http://www.bloomberg.com/news/2014-06-0 ... probe.html

[winston]

JPM: Mainland copper sector attractive; JIANGXI COPPER (00358.HK) chosen as top pick
2014-07-03

According to the latest research report by JP Morgan, cooper price had plunged in early June due to the warehousing issues at Qingdao Port, yet the price had rebounded solidly, thanks to strong market demands.

China had stockpiled copper and copper assets despite the volatility, highlighting the structural shortage of copper in China and the attractive valuations.

JIANGXI COPPER (00358.HK) +0.200 (1.522%) Short selling $15.18M; Ratio 8.466% remained the preferred stock of the bank, and rating was reiterated Overweight.

Fiscal 2014/2015 earnings estimates of JIANGXI COPPER were reduced by 16% and 24% respectively.

Target price was trimmed from $17 to $15. CHINALCO-CMC (03668.HK) +0.040 (4.040%) and CHINFMINING (01258.HK) 0.000 (0.000%) were rated Neutral, and target price was slashed to $1.1 and $2.2 respectively.

Source: AAStocks Financial News

[winston]

Copper demand keeps surging… new 52-week highs for mining companies Freeport-McMoRan and Southern Copper.

[winston]

Dr Copper on the mend

OVERWEIGHT - Maintained

After being down as much as 13% on its 2013 close the copper price is now just 2.6% down year to date. Themes of low inventories, recovering demand and supply tightness that we discussed in our commodities update last month have emerged to drive copper back above US$7,000/t to four-month highs.

With signs of strengthening demand, we think the time is right to be increasing copper exposure and reiterate OZ Minerals as our preferred stock. Copper inventories have dropped rapidly and to multi-year lows across all the major exchanges. When measured in days of consumption, stocks are sitting between 35% and 47% of average levels of the last 18 months.

Tight market balance

After forecasting a copper market surplus of 387kt for 2013 the International Copper Study Group (ICSG) reported a deficit of 297kt. A surplus was also forecast for 2014 but data from both the ICSG and the World Bureau of Metal Statistics (WBMS) shows deficits of 205kt and 287kt to March and April, respectively. Recovering demand (up 14% year to date) and supply growth of just 5% ytd exacerbated by Indonesian export bans leads us to the view the market will be in deficit for 2014.

Positive demand outlook

Key economic and consumption indicators such as manufacturing PMI’s and GDP form our view that copper demand will continue to improve and the price will remain well supported. China continues to account for 40% of global copper consumption and our forecasts are for growth to remain mid 7%. We believe that supplementary demand will be driven by recovery in other major economies.


Source: CIMB

[winston]

"Trophy" copper miner Freeport-McMoRan is quietly soaring… shares are sitting at their highest level since late 2012.

[behappyalways]

China’s Copper Imports Slow Due to Probe
http://blogs.wsj.com/chinarealtime/2014 ... -to-probe/