This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Copper Prices Sluggish on Tepid Demand

Stocks in this article: KAZ SCCO FCX

NEW YORK ( TheStreet) -- Copper prices are down marginally following easing prices on the London Metal Exchange as global markets reflected tempered demand from China.

The July benchmark is currently trading down 3 cents at $4.02 on the Comex in New York. The three-month benchmark for copper on the London Metal Exchange closed down 0.2% at $4.09 per pound last trading session. The August copper benchmark on the Shanghai Futures Exchange last closed down 0.6%.

A monthly update on industrial production, due out on Wednesday, is expected to shed light on how factories, mines and utilities are doing. Overall growth was flat in April, largely due to a slowdown in auto manufacturing in Japan. However, mining production saw a 0.8% increase in April.

Industrial production data, along with manufacturing and unemployment statistics are amongst the biggest factors influencing the metals market.

The markets are likely to watch Chinese economic data once again this week as the country plans to release readings on consumer and producer prices Tuesday. Economists are predicting that a rise in Chinese imports and continued strength in construction as the year progresses will help boost copper's upside in the longer term.

Last Friday's copper prices settled at a two-week low, mainly on weak import-export data from China. The country reported last week that its imports for May dropped 36% from the same month a year earlier.

Copper mining company Kazakhmys is set to increase copper supplies to China, according to a Reuters report. Kazakhmys, with operations in Kazakhstan, just signed a $1.5 billion loan agreement with China Development Bank, owned by the Chinese government. The agreement will allow China to tap into the development of one of Kazakhmys most promising copper deposits. China previously loaned $2.7 billion to Kazakhmys to develop another one of its major copper fields in 2009.

Kazakhmys shares are currently trading up 3.4% at 1253 pounds per share on the London Stock Exchange.

Production at Chilean mining company Codelco is still short of capacity after worker protests over wages last Friday, said Reuters. Codelco, which owns El Teniente, the world's fifth-largest copper mine, produces about 400,000 tons of copper a year and has reportedly lost 7,000 tons of production so far due to labor disruptions. The strike has escalated fears of a longer term disruption in copper supply from the world's number one copper producer.

The dollar index, often inversely related to copper prices, is down 0.25% at $74.65 compared to a basket of currencies this morning.

Copper mining stocks were generally up or flat this morning. Mining company Southern Copper (PCU) is up 0.3% at $31.59. Freeport-McMoRan Copper & Gold (FCX) is up 0.47% at $49.17.

-- Written by Chao Deng in New York.

>To contact the writer of this article, click here: Chao Deng.

Readers Also Like:

Copyright 2011 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs