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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
CommSec
22 Oct 14 21:25:16
All Ords -0.1% or 7pts. Miners down ~1.5%. If it wasn't for losses from $BHP & $RIO today, the market would be a touch firmer #ausbiz ^SD
Mike Mustafoglu
22 Oct 14 19:41:50
$AMJ $ARP $BBEP $BHP $BP $CCJ $CHK $COP $CLB $CVX $CRZO $DK $DVN $EOG $EPD $GLNG $GLOG $GPRE $HCLP $HFC $LGCY $LINE Bearish Stochastic Cross
Rex Dwyer
22 Oct 14 18:41:01
Like I thought, $BHP to keep pumping out Iron Ore. They won't “protect other people’s business.” I see $50USD/mt. http://t.co/vLTsCGjtU4
luckypete
22 Oct 14 18:13:45
ASX AUS Giant Miner ADR $BHP Billiton opened 33.72 - 1.60%, FIG projects a NEG open for Ger xetra $DAX, 1st TARGET ^GDAXI - 1.28% or 8825.
Financial Review
22 Oct 14 17:35:21
.@BHPBilliton has been on the back foot, but as London AGM looms, expect it to start selling itself. #ausbiz $BHP http://t.co/JgCV2biSBv
Fe Limited
22 Oct 14 16:31:16
Iron ore prices below $100 are $BHP's base case http://t.co/5CHOA1mgPr #ironore #steel #chinabiz #metals #mining
Sufiy
22 Oct 14 15:25:02
M&A Watch: Los Azules #Copper - Acquisitions signal a turning market for #miners. $MUX $TNR.v $GDX $FCX $BHP http://t.co/7tDPJDir3u
Stock Relay
22 Oct 14 15:01:39
stockblaster14: Stock Alerts: Bhp Billiton Limited (BHP) 58.99 $BHP Global http://t.co/VLljr1nOAz
stockblaster14
22 Oct 14 14:59:09
Bhp Billiton Limited (BHP) 58.99 $BHP Global Shale Gas Market Outlook 2020: Market is Forecast to Reach $100+ http://t.co/hTK2oCkodn
Stock Relay
22 Oct 14 13:39:08
stockblaster14: Stock Alerts: Bhp Billiton Limited (BHP) 58.99 $BHP Global http://t.co/pyyiX2ONWM
Stockaholics
22 Oct 14 11:52:58
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $BHP $CADX $BSX
Seeking Alpha
22 Oct 14 11:07:53
Stefan Ioannou: Copper, Nickel, And Zinc Won't Be Cheap For Long http://t.co/DYBc12bReS $BHP $CPPMF $CSFFF $HBM $LUNMF $NSU $TREVF $BALMF
US Banking News
22 Oct 14 09:15:06
BHP Billiton Limited $BHP – Research Analysts’ Recent Ratings Updates http://t.co/AymgQpnC4e
InterCooler
22 Oct 14 08:51:27
BHP Billiton Limited $BHP – Research Analysts’ Recent Ratings Updates http://t.co/oTTTfrikTM
Ryan Mallory
22 Oct 14 08:16:20
Scratch $BHP from the list
Zenzo L
22 Oct 14 07:59:24
BHP the latest miner to shovel coal into flooded market http://t.co/WaWqpr2Hn7 $BHP $AAUKF $AAUKY $KOL #mining #coal
Forex  News Insider.
22 Oct 14 07:57:24
BHP the latest miner to shovel coal into flooded market http://t.co/IVbbNEaW1A $BHP $AAUKF $AAUKY $KOL
Media Sentiment
22 Oct 14 07:45:03
$BHP received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 349
MarketCurrents
22 Oct 14 07:43:55
BHP the latest miner to shovel coal into flooded market http://t.co/EmX2rkGFOc $BHP $AAUKF $AAUKY $KOL
Market Int Center
22 Oct 14 07:41:47
BHP Billiton $BHP Showing Bearish Technicals With Resistance At $60.62 ( http://t.co/bqcm6qbw0U )
David Dierking
22 Oct 14 07:35:51
Commented on: "Cliffs Natural Resources Will Continue To Suffer" http://t.co/topDT3M7bp $CLF $BHP $RIO $VALE
shubhankar.c
22 Oct 14 07:35:26
All Female E-Mail at BHP Billiton $BHP Shows Mine Shift From Boys’ Club #mining $LMI $RIO http://t.co/ZlKfWq0Bih @BloombergNews
Fish4Bucks
22 Oct 14 07:18:28
60m $BHP 59.160 Price action Crossing Down Median Support #stocks Signals based on the Fish4Bot indicator Pl... http://t.co/WZwETG8am0
Dividend Master
22 Oct 14 07:14:50
http://t.co/sb4bgJ7VPv , $BHP is out to kill its rivals in long run . But they will take losses themselves doing it #IronOrePriceWars
BusinessNewsNetwork
22 Oct 14 07:12:30
RT @forgefirst: $BHP quarterly production update includes #copper miss due to low grades & power outages in #chile but ok for rest @BNN #oi…
Andrew McCreath
22 Oct 14 07:09:32
$BHP quarterly production update includes #copper miss due to low grades & power outages in #chile but ok for rest @BNN #oil $RIO #stocks
luckypete
22 Oct 14 06:48:51
@petergo99037185 $DAX BACK to ORIGINAL $BHP 1st TARGET this AM, 8985, Index BIAS is UP AGAIN.
luckypete
22 Oct 14 06:34:59
@DBZNappa 8985 was my $BHP 1st Target this AM, 8934 now, we only 60 points away, ?? Don't Understand WHY U question?
Cristobal Barberis
22 Oct 14 06:25:08
Top 5 stocks with Up days in a row. #bearish $MCRS {10}, $VTR {10}, $AGNC {8}, $ATHM {8}, $BHP {7} #brberisReport
nasdaq_crazy
22 Oct 14 05:27:39
STRONG BUY $BHP. Very nice report out yesterday by them.
Kirill Klip
22 Oct 14 05:21:56
RT @Sufiy: M&A Watch: Los Azules #Copper - Acquisitions signal a turning market for #miners. $MUX $TNR.v $GDX $FCX $BHP http://t.co/AILmMhc…
Ticker Report
22 Oct 14 05:13:33
Jefferies Group Downgrades BHP Billiton Limited to Hold $BHP http://t.co/CQB5XZ4f0h
Sufiy
22 Oct 14 04:30:43
RT @kirillklip: M&A Watch: Los Azules #Copper - Acquisitions signal a turning market for #miners. $MUX $TNR.v $GDX $FCX $BHP http://t.co/6a…
Sufiy
22 Oct 14 04:23:46
RT @TNR_Gold: M&A Watch: Los Azules #Copper - Acquisitions signal a turning market for #miners. $MUX $TNR.v $GDX $FCX $BHP http://t.co/W2Hy…
Media Sentiment
22 Oct 14 04:23:23
$BHP received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 122
Futures and Options
22 Oct 14 04:21:38
$BHP Billiton reports Q3 production numbers showing the iron ore and coking coal divisions performed as well as or better than expected
Sleek Money
22 Oct 14 03:23:46
BHP Billiton Limited Cut to Underperform at Zacks $BHP http://t.co/zWXwtpZEVW
NASDAQ
22 Oct 14 02:58:06
$BHP - ASIA MARKETS: Japanese Stocks Lead Rally In Asian Markets http://t.co/YER7zDocx3
Kirill Klip
22 Oct 14 02:10:27
RT @TNR_Gold: M&A Watch: Los Azules #Copper - Acquisitions signal a turning market for #miners. $MUX $TNR.v $GDX $FCX $BHP http://t.co/W2Hy…
Anthony Milewski
22 Oct 14 01:38:43
RT @TNR_Gold: M&A Watch: Los Azules #Copper - Acquisitions signal a turning market for #miners. $MUX $TNR.v $GDX $FCX $BHP http://t.co/W2Hy…
TNR Gold Corp
22 Oct 14 01:37:40
M&A Watch: Los Azules #Copper - Acquisitions signal a turning market for #miners. $MUX $TNR.v $GDX $FCX $BHP http://t.co/W2Hyhs54pg
Stockaholics
22 Oct 14 00:51:39
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $BHP $CADX $BSX
luckypete
21 Oct 14 23:42:10
$DAX closed 8886, Pre-Mkt 8955, futures about 8940, My $BHP 1st TARGET is much higher at 8985<<
luckypete
21 Oct 14 23:41:46
@petergo99037185 $DAX late $BHP AUS Miner exporter, projection for 1st TARGET 8985 Up there ===> 9K close! We need to SHORT THAT!
Interactive Brokers
21 Oct 14 23:40:42
#IBTI Stocks - 7th straight rally for Australian equities as global sentiment rebounds http://t.co/sguSs3arUN $BHP $RIO $XJO
Dee on Money
21 Oct 14 23:09:54
RT @JSEtracker: Jefferies downgrades BHP as it lowers metals price targets http://t.co/t5uJlaaiok $BHP $RIO $VALE
'ga re Tshwane'
21 Oct 14 23:07:12
RT @JSEtracker: Jefferies downgrades BHP as it lowers metals price targets http://t.co/t5uJlaaiok $BHP $RIO $VALE
Cratos Capital
21 Oct 14 23:06:56
Jefferies downgrades BHP as it lowers metals price targets http://t.co/t5uJlaaiok $BHP $RIO $VALE
Paul Robinson
21 Oct 14 22:52:52
RT @Cape_Lambert: Iron ore prices below $US100 are 'baked into' $BHP plans http://t.co/iuwASqXVB4 #MikeHenry #Ausbiz #IO #supply #resources…
luckypete
21 Oct 14 22:03:49
$oil IS FLAT, #GOLD AS FORECAST DOWN, MOVE UP IS OVER, CASH YOUR CHIPS WHILE U GOT SOME, PERIOD.. $DAX A/M CLOSED 8905, $BHP PROJECTED 8905
				
				
By  +Follow August 19, 2013 7:30AM
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