Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  Freeport-McMoRan Inc    FCX

FREEPORT-MCMORAN INC

(FCX)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Fresh Oversupply Worries Jolt Copper

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/27/2018 | 10:17am EST

By Amrith Ramkumar and David Hodari

Copper prices fell Friday on worries that the market will continue to be well supplied, limiting future gains.

Copper for July delivery shed 2.5% to $3.061 a pound on the Comex division of the New York Mercantile Exchange. Prices had risen in four straight weeks entering this one but have tumbled of late and are down more than 7% in 2018, after hitting a nearly four-year high late last year.

Investors are worried that the supply disruptions that buoyed prices last year from mining labor contract renegotiations and other conflicts with host governments haven't materialized yet in 2018, meaning the market could continue to be well supplied.

On Friday, the International Copper Study Group said it now expects a small supply surplus in 2018, after previously projecting a deficit

"The switch to surplus is due to stronger than previously anticipated growth in refined copper production," the group said in a statement with its latest forecasts.

Traders were also reacting to news from U.S. giant Freeport-McMoRan Inc. that its latest spat with the Indonesian government regarding control over the world's second-largest copper mine, Grasberg, hasn't yet affected production. Indonesia recently said it wanted Freeport to meet new environmental standards in just six months, the latest barb in an extended back-and-forth between the two sides.

Another prominent copper producer, Norilsk Nickel, said Thursday that first-quarter copper production rose 18% from a year earlier.

Still, some analysts expect the uncertainty surrounding Freeport's negotiations with Indonesia and labor negotiations at the BHP Billiton-operated Escondida mine in Chile to boost copper moving forward as consumption data from China, the world's largest consumer, picks up steam.

Long-term investors have also been encouraged by the lack of growth projects that could boost copper supply in future years, and the ICSG reiterated Friday that it expects a supply deficit in 2019.

Elsewhere in base metals, aluminum for delivery in three months on the London Metal Exchange declined 1.4% to $2,244 a metric ton, continuing a recent bout of extreme volatility. Prices surged Thursday on a Bloomberg report that sanctioned Russian metals tycoon Oleg Deripaska, who controls aluminum giant United Co. Rusal, wants to keep control of the company, potentially creating a standoff with the U.S. government.

The U.S. has said it might relieve sanctions if Mr. Deripaska sells his stake. Rusal denied the report was accurate, and some analysts think it is a negotiating tactic by Mr. Deripaska to pressure the U.S. or get a better deal if he sells.

Worries about supply tied to Rusal has jolted the aluminum, palladium and nickel markets this months, but some analysts expect a resolution to calm traders moving forward.

Among precious metals, gold for June delivery inched up 0.3% to $1,321.80 a troy ounce from its lowest close in more than a month. Prices have fallen recently with the dollar rising, as a stronger dollar makes commodities denominated in the U.S. currency more expensive for overseas buyers.

Write to Amrith Ramkumar at amrith.ramkumar@wsj.com and David Hodari at David.Hodari@dowjones.com

Stocks mentioned in the article
ChangeLast1st jan.
FREEPORT-MCMORAN INC -0.18% 11.01 Delayed Quote.9.41%
LME ALUMINIUM CASH 0.78% 1748 End-of-day quote.-5.92%
LME COPPER CASH 0.88% 5873 End-of-day quote.0.58%
LME NICKEL CASH -1.14% 14310 End-of-day quote.37.07%
PALLADIUM -0.02% 1760.96 Delayed Quote.38.99%
PUBLIC JOINT STOCK COMPANY MINING AND METALLURGICAL COMPANY NORILSK NICKEL -0.51% 27.55 Delayed Quote.47.60%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on FREEPORT-MCMORAN INC
11/06FREEPORT MCMORAN : Management's Discussion and Analysis of Financial Condition a..
AQ
11/06SURGE EXPLORATION : Acquires Additional Claims Nearby the Recently Optioned Cale..
AQ
11/03Zijin Mining Agrees to Acquire Stake in Timok Copper-Gold Mine
DJ
10/23FREEPORT-MCMORAN INC : Results of Operations and Financial Condition, Regulation..
AQ
10/23FREEPORT MCMORAN : Posts Lower Copper Sales -- Commodity Comment
DJ
10/23Freeport-McMoRan Swings to 3Q Loss
DJ
10/23FREEPORT-MCMORAN : 3Q Earnings Snapshot
AQ
10/23FREEPORT MCMORAN : Reports Third-Quarter and Nine-Month 2019 Results
BU
10/23FREEPORT-MCMORAN INC : 3rd quarter results
CO
10/22FREEPORT-MCMORAN INC : Report
CO
More news
Financials (USD)
Sales 2019 14 269 M
EBIT 2019 839 M
Net income 2019 -148 M
Debt 2019 7 993 M
Yield 2019 1,82%
P/E ratio 2019 -120x
P/E ratio 2020 19,9x
EV / Sales2019 1,68x
EV / Sales2020 1,63x
Capitalization 15 975 M
Chart FREEPORT-MCMORAN INC
Duration : Period :
Freeport-McMoRan Inc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends FREEPORT-MCMORAN INC
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 12,85  $
Last Close Price 11,01  $
Spread / Highest target 45,3%
Spread / Average Target 16,7%
Spread / Lowest Target -9,17%
EPS Revisions
Managers
NameTitle
Richard C. Adkerson Vice Chairman, President & Chief Executive Officer
Harry Milton Conger President & Chief Operating Officer-Americas
Gerald J. Ford Non-Executive Chairman
Kathleen L. Quirk Chief Financial Officer, Treasurer & Executive VP
Dustan E. McCoy Independent Director