• 24 hours Apple Stocks Falls After Blowout Earnings Report
  • 24 hours The 5 Biggest IPO Disasters Of 2021
  • 2 days Crypto-Based ‘Shadow Financial Market’ Spooks Regulators
  • 5 days Ireland Balks At Biden’s Global Tax Plan
  • 8 days Robinhood To Trade On Nasdaq Targeting $32B Valuation
  • 12 days Facial Recognition Is Watching You
  • 13 days Biden’s $3.5T ‘Human Infrastructure’ Workaround
  • 13 days The Fed’s $3 Trillion Headache
  • 16 days Why Bitcoin Could Struggle To Recover After Epic Crash
  • 16 days Wells Fargo Back In The Spotlight Over Personal Loan Cancellations
  • 17 days Delta Variant Real Threat To Economic Recovery
  • 20 days JEDI Drama Continues With Microsoft Contract Cut
  • 22 days DiDi Shares Take a Beating From Chinese Regulators
  • 23 days Thousands Of Companies Hit In Latest Ransomware Attack
  • 23 days Jobs Report Has Big Numbers, But Still Big Problems
  • 24 days Robinhood’s ‘Mission’ Questioned in $70M Fine
  • 27 days Didi Just Went Public, And Uber Is Loving It
  • 28 days Islamic Finance On Track To Hit $3.7 Trillion
  • 29 days The Lumber Bubble Is Bursting
  • 33 days A New Entry In The Two Trillion Dollar Club
The Unsung Hero In The Race To Go Green

The Unsung Hero In The Race To Go Green

A team of international scientists…

China's Stainless Steel Dominance Is Growing

China's Stainless Steel Dominance Is Growing

Asia in general and China…

U.S. Takes Stake In Irish Battery Metal Producer

U.S. Takes Stake In Irish Battery Metal Producer

The US government is taking…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Industrial Metals

Copper Miners Feel The Squeeze As Prices Slip Once Again

Copper

The price of copper weakened again on Thursday amid the worst US factory conditions in a decade and near-record bearish bets on futures markets on the bellwether metal.

 

In afternoon trading in New York, copper for delivery in December was trading just off its low for the day of $2.538 a pound ($5,596 a tonne), bringing losses for 2019 to more than 5%.

Trade worries have dogged copper price bulls for the better part of a year, but more recently weak data from China, the US and Germany, together responsible for 70% the world’s consumption, have intensified the sell off.

While there is near unanimous consensus that copper’s long term prospects are bright (particularly under a Greta Thunberg scenario), a lower for longer price is likely to cull the industry of marginal producers – those in the 90th percentile of costs.

In a new report, BMO Capital Markets slashed its forecast for the copper price for next year by 9.6% to $2.93/lb ($6,460/t) and by smaller margins through 2023. The investment bank kept its long-term equilibrium price for the orange metal steady at $3.25/lb ($7,165/t).  Related: Millions Missing After Marijuana Ponzi Scheme Implodes

BMO calculates at current prices, some 10% of copper mines around the globe are operating at a loss (while nickel extractors can’t believe their luck – see graph).

Apart from longer term trends like falling grades at mature mines, metals consultancy CRU estimates weakness in prices for metals mined as a byproduct – particularly cobalt – has added roughly $290 per tonne this year. Without higher gold and silver prices, upward pressure on costs would have been even more intense.

(Click to enlarge)

By Mining.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment