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Since the beginning of the year, the copper price has lost considerable ground. But inventories are low and new capacity is far away.
The early warning indicator for copper does not bode well, as the price of the red metal has slipped significantly. The raw material, which is mainly used in the construction industry, is trading around 20 percent lower than at the beginning of the year. According to experts, a further price decline is possible before a strong recovery can set in, both from a fundamental and a technical point of view. Copper is an important raw material not only in the construction industry, but also in the energy and telecommunications sectors. Shortly after the start of the Ukraine-Russia war, copper had reached the recent record high, then the economic upheaval caused prices to fall. A stronger US dollar and weaker global economic growth are currently affecting base metals, especially copper. Added to this is the Fed's interest rate tightening and China's zero-covid policy.
But when the fears of recession subside and the supply chains start to function better again, copper will once more present itself as the metal it actually is, also in terms of price. Namely, an indispensable component of the future. May the Fed's hopes come true that U.S. inflation moves back away from 40-year highs and settles at a tolerable level of around two percent. Significant new copper production is not expected, and the quality of copper deposits continues to deteriorate. Then, when comeback opportunities manifest themselves, it should be good to have invested in copper and persevered through the lean period. Copper is owned by Copper Mountain Mining or Kutcho Copper, for example.
Copper Mountain Mining - https://www.youtube.com/watch?v=DHxF_-3tU1c - has a 75 percent interest in the successfully producing Copper Mountain Mine in British Columbia, in addition to two copper projects in Australia.
Kutcho Copper - https://www.youtube.com/watch?v=Fj9xXKHciGE - is expanding and developing the high-grade Kutcho copper-zinc project, also in British Columbia.
Current corporate information and press releases from Copper Mountain Mining (- https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp/ -) and Kutcho Copper (- https://www.resource-capital.ch/en/companies/kutcho-copper-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
Since the beginning of the year, the copper price has lost considerable ground. But inventories are low and new capacity is far away.
The early warning indicator for copper does not bode well, as the price of the red metal has slipped significantly. The raw material, which is mainly used in the construction industry, is trading around 20 percent lower than at the beginning of the year. According to experts, a further price decline is possible before a strong recovery can set in, both from a fundamental and a technical point of view. Copper is an important raw material not only in the construction industry, but also in the energy and telecommunications sectors. Shortly after the start of the Ukraine-Russia war, copper had reached the recent record high, then the economic upheaval caused prices to fall. A stronger US dollar and weaker global economic growth are currently affecting base metals, especially copper. Added to this is the Fed's interest rate tightening and China's zero-covid policy.
But when the fears of recession subside and the supply chains start to function better again, copper will once more present itself as the metal it actually is, also in terms of price. Namely, an indispensable component of the future. May the Fed's hopes come true that U.S. inflation moves back away from 40-year highs and settles at a tolerable level of around two percent. Significant new copper production is not expected, and the quality of copper deposits continues to deteriorate. Then, when comeback opportunities manifest themselves, it should be good to have invested in copper and persevered through the lean period. Copper is owned by Copper Mountain Mining or Kutcho Copper, for example.
Copper Mountain Mining - https://www.youtube.com/watch?v=DHxF_-3tU1c - has a 75 percent interest in the successfully producing Copper Mountain Mine in British Columbia, in addition to two copper projects in Australia.
Kutcho Copper - https://www.youtube.com/watch?v=Fj9xXKHciGE - is expanding and developing the high-grade Kutcho copper-zinc project, also in British Columbia.
Current corporate information and press releases from Copper Mountain Mining (- https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp/ -) and Kutcho Copper (- https://www.resource-capital.ch/en/companies/kutcho-copper-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
