• 10 hours Are Bitcoin’s Environmental Risks Overblown?
  • 17 hours Why The Gold Rush Ran Out Of Steam
  • 3 days Coinbase IPO Explodes, But Fails To Keep Its Momentum
  • 4 days China Slaps Alibaba With Record $2.75B Antitrust Fine
  • 5 days The Pandemic Has Culled The Middle Class
  • 6 days Legacy Automakers See Massive Spike In Sales
  • 7 days Tesla's Biggest Competitor Is Going Cobalt-Free
  • 8 days Stocks That Could Benefit From Biden’s $2.5 Trillion Infrastructure Plan
  • 10 days The Mafia Has Expanded Its Influencer Under COVID-19
  • 11 days How Fintech Will Get Skeptics Into Crypto
  • 12 days Monday Markets Rise On Stellar Jobs Report
  • 15 days Not Even Bribery Allegations Can Crush Cannabis Boom
  • 19 days Canada May Become Leader In Booming Battery Market
  • 20 days Nearly 42% Of All Amazon Reviews Are Fake
  • 21 days Kidnapping Is Big Business In Nigeria
  • 22 days COVID Fraud Amounts To Nearly $570M
  • 24 days Art Is Now An Algorithm
  • 26 days TikTok Threatens America, Tesla Threatens China
  • 26 days Small-Cap Energy Sectors With Big Upside
  • 29 days Coinbase Valued At $68 Billion Ahead Of IPO
What's Next For Glencore's Biggest Cobalt Mine?

What's Next For Glencore's Biggest Cobalt Mine?

Congo dominates world cobalt production…

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