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Copper and Aluminum Prices To Drop On Taper, Weaker Chinese Demand

By  +Follow August 19, 2013 7:30AM
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Copper futures due for delivery in December dropped 1 percent to $3.33 per-pound to begin the week of trading on Monday, on concerns about weakening demand for the metal through the remainder of 2013.

With a growing certainty across markets that the Federal Reserve will begin its gradual reduction of stimulus spending from $85 billion to $65 billion per month starting in September, analysts have worried that the resulting increase in the strentth of the dollar will send commodity prices downwards. Edward Meir, an analyst at New York’s INTL FCStone was quoted in a report as saying that a September taper would “likely result in a stronger dollar and a rollback in many commodity prices, including base metals.”

Futures have fallen nearly 8 percent so far in 2013, though prices have been on an upward trajectory for first half of August, due to better than expected economic data coming out of China. The country is the world’s largest consumer of copper, and trade figures released on Aug. 8 sent copper prices and related ETFs surging as expectations for a slow-down in construction were shown to be overstated.

The world’s largest mining companies, Rio Tinto Plc. (RIO) and BHP Billiton (BHP) posted significant increases in copper production for the second quarter. This production increase has led to more or less of a consensus that 2013 will see a stockpile surplus that will send prices lower either way. Furthermore, analysts have still been skeptical about the sustainability of the Chinese growth that has propelled copper.

Other base metals were feeling the pressure on Monday as well, with aluminum down 1.3 percent to $1,919.25 per ton on the London Metal Exchange, followed by zinc, nickel, and tin. United Rusal Co., the world’s largest producer of aluminum, said that announced reductions to its aluminum production targets in the wake of second-quarter losses.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for BHP
Andrew Bayer
1 Sep 14 18:18:24
RT @KitchenNews: Australia stocks inch down with big banks weak -- details here: http://t.co/uO0qOIK1ID $AUD $XJO $BHP $RIO $QAN
Alysia Sarkisian
1 Sep 14 18:10:22
RT @KitchenNews: Australia stocks inch down with big banks weak -- details here: http://t.co/uO0qOIK1ID $AUD $XJO $BHP $RIO $QAN
Auto Binary option
1 Sep 14 18:07:53
RT @KitchenNews: Australia stocks inch down with big banks weak -- details here: http://t.co/uO0qOIK1ID $AUD $XJO $BHP $RIO $QAN
FinanzLinksASIA
1 Sep 14 18:07:11
RT @KitchenNews: Australia stocks inch down with big banks weak -- details here: http://t.co/uO0qOIK1ID $AUD $XJO $BHP $RIO $QAN
MKTWAsia
1 Sep 14 18:03:44
RT @KitchenNews: Australia stocks inch down with big banks weak -- details here: http://t.co/uO0qOIK1ID $AUD $XJO $BHP $RIO $QAN
MarketWatch
1 Sep 14 18:03:44
RT @KitchenNews: Australia stocks inch down with big banks weak -- details here: http://t.co/uO0qOIK1ID $AUD $XJO $BHP $RIO $QAN
Evener Investment
1 Sep 14 18:03:32
RT @KitchenNews: Australia stocks inch down with big banks weak -- details here: http://t.co/uO0qOIK1ID $AUD $XJO $BHP $RIO $QAN
Michael Kitchen
1 Sep 14 18:03:25
Australia stocks inch down with big banks weak -- details here: http://t.co/uO0qOIK1ID $AUD $XJO $BHP $RIO $QAN
Alessandro
1 Sep 14 08:22:56
These 3 #Australian Iron Ore #Miners Stand Up Best To Weakening Spot Prices - $BHP | Seeking Alpha - http://t.co/twijipSqlq
awolam
1 Sep 14 03:10:59
RT @SeekingAlpha: These 3 Australian Iron Ore Miners Stand Up Best To Weakening Spot Prices http://t.co/Gl9etytqOT $FSUMF $RIO $BHP
Seeking Alpha
1 Sep 14 03:00:08
These 3 Australian Iron Ore Miners Stand Up Best To Weakening Spot Prices http://t.co/Gl9etytqOT $FSUMF $RIO $BHP
Sufiy
1 Sep 14 02:16:45
RT @kirillklip: Los Azules in San Juan, one of the largest undeveloped #copper deposits in the world http://t.co/RzfmcwARiF $ABX $MUX $GDX…
Market News
1 Sep 14 01:07:37
$BHP: Twenty-First Century Fox Inc (FOX), BHP Billiton Limited (ADR) (BHP) And ... http://t.co/kRERakQafY http://t.co/UZPQhbxeII
luckypete
1 Sep 14 00:09:43
$dax OPENED HIGHER AT $bhp TARGET,...
David H
31 Aug 14 22:58:53
RT @CalibreInvest: #IronOre producer cost curve (courtesy of Credit Suisse). $RIO followed by $BHP, operating the lowest cost mines. http:/…
Assad Tannous
31 Aug 14 22:34:49
RT @CalibreInvest: #IronOre producer cost curve (courtesy of Credit Suisse). $RIO followed by $BHP, operating the lowest cost mines. http:/…
Dean Morel
31 Aug 14 22:32:56
RT @CalibreInvest: #IronOre producer cost curve (courtesy of Credit Suisse). $RIO followed by $BHP, operating the lowest cost mines. http:/…
Tim Schroeders
31 Aug 14 22:04:13
RT @CalibreInvest: $BHP, over the past 12 months has reverted 12 times back to its mean of $37.10. #rangetrade http://t.co/87v8E2pKBs
CalibreInvest
31 Aug 14 22:00:09
$BHP, over the past 12 months has reverted 12 times back to its mean of $37.10. #rangetrade http://t.co/87v8E2pKBs
David de los Angeles
31 Aug 14 21:21:05
Commented on: "Natural Gas: Will The Haynesville Resurrect?" http://t.co/1kVpLS7WE6 $APC $BHP $BX $CHK
CalibreInvest
31 Aug 14 21:14:11
#IronOre producer cost curve (courtesy of Credit Suisse). $RIO followed by $BHP, operating the lowest cost mines. http://t.co/mo5wlNCB4c
Cape Lambert
31 Aug 14 19:10:10
Aust giants $RIO + $BHP well placed as iron ore price plunge breaks high cost global competitors http://t.co/U2rt0iZsq7 $VALE #commods
Financial Headlines
31 Aug 14 19:07:44
$BHP: BHP Billiton Reports Strong Financial Results http://t.co/dkGbFhjBFO http://t.co/HqrtyW96b9
Wall Street News
31 Aug 14 18:07:37
$BHP: BHP Billiton Limited Stock Rating Upgraded by S&P Equity Research (BHP) http://t.co/1ztNi0OQRk http://t.co/sajYJdJURZ
luckypete
31 Aug 14 17:31:56
$BHP AUS opened 36.81 + 0.38% Projecting $DAX MON UP open. 1st TARGET $DAX + 0.30% or 9498
Kirill Klip
31 Aug 14 08:56:43
Los Azules in San Juan, one of the largest undeveloped #copper deposits in the world http://t.co/RzfmcwARiF $ABX $MUX $GDX $FCX $RIO $BHP
Kirill Klip
31 Aug 14 07:40:15
RT @Sufiy: TNR #Gold Los Azules #Copper: Acquisitions signal a turning market for #miners. $MUX $ABX $GDX $BHP $FCX http://t.co/u1FXnd7hZW
Sufiy
31 Aug 14 07:10:45
Los Azules in San Juan, one of the largest undeveloped #copper deposits in the world http://t.co/Py8wbzrUXA $ABX $MUX $GDX $FCX $RIO $BHP
Netwall
30 Aug 14 12:06:23
Commented on: "Natural Gas: Will The Haynesville Resurrect?" http://t.co/2TN39Ovhr4 $APC $BHP $BX $CHK
Evener Investment
30 Aug 14 08:57:53
RT @SeekingAlpha: Natural Gas: Will The Haynesville Resurrect? http://t.co/x8YKDJquTZ $APC $BHP $BX $CHK $ECA $XCO
Seeking Alpha
30 Aug 14 08:57:43
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Business Headlines
30 Aug 14 06:07:30
$BHP: BHP Billiton plc (ADR) (BBL), Infosys Ltd ADR (INFY), Teva Pharmaceutical ... http://t.co/k7nF5jFHFi http://t.co/1XbvDcWHS3
Sufiy
30 Aug 14 05:21:20
RT @kirillklip: Commented on: "First Quantum Is Headed For First Place In Copper Production" http://t.co/HNtPgsfviz $FQVLF $ABX $BHP $RIO
Sufiy
30 Aug 14 05:19:13
TNR #Gold Los Azules #Copper: Acquisitions signal a turning market for #miners. $MUX $ABX $GDX $BHP $FCX http://t.co/u1FXnd7hZW
Yellen's Yodel ™
29 Aug 14 20:06:38
Maybe if $BHP utilized the money spent to sponsor HOU Dynamo they would teach my damn Sell PT of $75 someday.
Dave Glover
29 Aug 14 18:32:46
RT @LobanovaNatalie: TNR #Gold Los Azules #Copper @mining: Busy times ahead: global mining deals on their way up http://t.co/7wvV3ihXrO #mi…
Sufiy
29 Aug 14 18:13:29
RT @LobanovaNatalie: TNR #Gold Los Azules #Copper @mining: Busy times ahead: global mining deals on their way up http://t.co/7wvV3ihXrO #mi…
Kirill Klip
29 Aug 14 15:28:08
RT @LobanovaNatalie: TNR #Gold Los Azules #Copper @mining: Busy times ahead: global mining deals on their way up http://t.co/7wvV3ihXrO #mi…
Gerardo Benitez
29 Aug 14 10:46:22
RT @TweetsMillenia: #Ironore prices hit lowest since October 2009 http://t.co/yxI1FyJUow $SID, $VALE, $CLF, $RIO, $BHP. Despite very low pr…
Natalie Lobanova
29 Aug 14 10:33:13
RT @ILCtsxv: Los Azules in San Juan, one of the largest undeveloped #copper deposits in the world http://t.co/3aBKxA6Xsz $ABX $MUX $GDX $F…
Natalie Lobanova
29 Aug 14 10:32:59
TNR #Gold Los Azules #Copper @mining: Busy times ahead: global mining deals on their way up http://t.co/7wvV3ihXrO #mining $ABX $BHP $MUX
Natalie Lobanova
29 Aug 14 10:31:12
RT @kirillklip: Los Azules in San Juan, one of the largest undeveloped #copper deposits in the world http://t.co/RzfmcwARiF $ABX $MUX $GDX…
Mark Yusko
29 Aug 14 10:25:33
RT @TweetsMillenia: #Ironore prices hit lowest since October 2009 http://t.co/yxI1FyJUow $SID, $VALE, $CLF, $RIO, $BHP. Despite very low pr…
Millenia Panama
29 Aug 14 10:07:44
#Ironore prices hit lowest since October 2009 http://t.co/yxI1FyJUow $SID, $VALE, $CLF, $RIO, $BHP. Despite very low prices avoid for now
Kirill Klip
29 Aug 14 10:03:40
RT @TNR_Gold: TNR #Gold Los Azules #Copper @mining: Busy times ahead: global mining deals on their way up http://t.co/DRKsXGqnw9 #mining $A…
Kirill Klip
29 Aug 14 10:03:37
RT @TNR_Gold: TNR #Gold Los Azules #Copper .@mining: Busy times ahead: global #mining deals on their way up http://t.co/DRKsXGqnw9 #mining …
Sufiy
29 Aug 14 09:55:44
RT @kirillklip: TNR #Gold @alisinawi: Acquisitions signal a turning market for miners http://t.co/U3cl3015YZ via @marketonemedia $MUX $GDX …
Sufiy
29 Aug 14 09:55:40
RT @TNR_Gold: TNR #Gold @alisinawi: Acquisitions signal a turning market for miners http://t.co/S7I4f1nftF via @marketonemedia $MUX $GDX $C…
Sufiy
29 Aug 14 09:52:46
RT @kirillklip: TNR #Gold Los Azules #Copper: Acquisitions signal a turning market for #miners. $MUX $ABX $GDX $BHP $FCX http://t.co/DgWORh…
Sufiy
29 Aug 14 09:51:59
RT @kirillklip: TNR #Gold Los Azules #Copper @mining: Busy times ahead: global mining deals on their way up http://t.co/26sjuLe4Vc #mining …
				
				
By  +Follow August 19, 2013 7:30AM
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