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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
Lone wolf
22 Aug 14 00:36:47
Cashed out $BHP put, a nice 450% $$$
luckypete
21 Aug 14 23:20:38
$DAX Closede at 9401, Pre-mkt opened about same, now 9397, lower, Fut 9388, also lower, appears a slightly NEG open is on, $BHP Target 9364
luckypete
21 Aug 14 23:16:18
ASX AUS Giant Miner ADR $BHP Billiton opened 37.84 -0.50%, FIG projects a NEG open for Ger xetra $DAX, 1st TARGET for ^GDAXI -0,40% or 9364.
Michelle Breton
21 Aug 14 22:52:04
RT @FinancialReview: 'Big Australian' $BHP chief backs moves to make companies smaller http://t.co/cS2isPjqeB
Lucas Bruggeman
21 Aug 14 21:11:34
RT @Sentifi_UK: $BHP the most discussed $FTSE Stock in the #financialcrowd today. Featured in @thisismoney http://t.co/mGdBZJQ7zK http://t.…
Jet Industrial
21 Aug 14 20:41:15
RT @FinancialReview: 'Big Australian' $BHP chief backs moves to make companies smaller http://t.co/cS2isPjqeB
James Thomson
21 Aug 14 20:33:38
RT @FinancialReview: 'Big Australian' $BHP chief backs moves to make companies smaller http://t.co/cS2isPjqeB
Dadiva  Netter
21 Aug 14 20:26:29
RT @FinancialReview: 'Big Australian' $BHP chief backs moves to make companies smaller http://t.co/cS2isPjqeB
Financial Review
21 Aug 14 20:23:58
'Big Australian' $BHP chief backs moves to make companies smaller http://t.co/cS2isPjqeB
Stock News Headlines
21 Aug 14 14:06:39
$BHP: Tuesday's Market Thorns... http://t.co/7jMuHfWjwF http://t.co/Q9mumXm7Pw
US Banking News
21 Aug 14 13:42:17
S&P Equity Research Upgrades BHP Billiton Limited to Buy $BHP http://t.co/iR0ov5CatX
Ticker Report
21 Aug 14 13:28:05
BHP Billiton Limited Raised to “Buy” at S&P Equity Research $BHP http://t.co/JUOM02xTvK
US Consumer News
21 Aug 14 13:19:50
BHP Billiton Limited (ADR) upgraded by S &P Equity Research to buy. http://t.co/nQsjNnf5A5 $BHP #BHP
Analyst Ratings
21 Aug 14 13:19:40
BHP Billiton Limited (ADR) upgraded by S &P Equity Research to buy. http://t.co/ILHr5aE6wz $BHP #BHP
Seeking Alpha
21 Aug 14 13:08:27
ArcelorMittal Down, But Not Out http://t.co/ieJcpQrXST $NUE $STLD $BHP $MT
The Northern Miner
21 Aug 14 10:16:46
BHP plans spinoff to focus on 'four pillars' http://t.co/WQDWmRdn2J #mining $BHP
Stock News Guru
21 Aug 14 10:07:33
$BHP: 'Fast Money' Recap: Building on a Housing Recovery http://t.co/hDiRVPzgDJ http://t.co/Ow4P0bVYUR
FlashRatingsHOT
21 Aug 14 10:05:04
$BHP has 3 analyst ratings in the last 7 days. Median target: $74. View here: https://t.co/ycNjyr0iJT #BHP
Seeking Alpha
21 Aug 14 09:46:02
BHP Billiton: About That Split http://t.co/OC2ECSPbjM $BHP
NASDAQ
21 Aug 14 09:20:29
$BHP - EUROPE MARKETS: Raiffeisen Rallies, Miners Slip: Europe Movers http://t.co/mvSMqNWFq9
NASDAQ
21 Aug 14 09:18:29
$BHP - LONDON MARKETS: Miners Drop In London After Weak China PMI http://t.co/DVCWKmklhF
4-traders.com
21 Aug 14 09:05:07
LONDON MARKETS: Miners Drop In London After Weak China PMI http://t.co/pYwlyW6nMe $AAL $BHP $RIO $BLT $SDR $RIO $AZN $RRS $FRES $ILMN $F100
Benzinga.com
21 Aug 14 09:01:20
3 Reasons To Follow The Big Dog In Natural #Resources $BHP $JJC $SPY http://t.co/JaDa1sx7VG #oil #coal #copper
luckypete
21 Aug 14 07:54:04
$DOW +74 getting stronger $SPX not following, $DAX hit 9400 retraced to $BHP 1st Target in Aussie land last night. Think DOWN is logical<
Brown's Descent
21 Aug 14 06:57:42
RT @SpinoffMonitor: BHP Billiton $BHP spinning off ~$12bn in assets http://t.co/KHSg5JXy0o
Financial Headlines
21 Aug 14 06:08:01
$BHP: Why Chinese imports could still rise despite low steel demand http://t.co/dkVsHlAtwu http://t.co/YJurYR0XLJ
InterCooler
21 Aug 14 06:05:28
BHP Billiton Limited $ADR Plans Semiannual Dividend of $1.24 $BHP http://t.co/D17E11s9WQ
Market Int Center
21 Aug 14 05:31:33
BHP Billiton $BHP Trading Near $71.92 Resistance Level ( http://t.co/y6FLP6cJut )
Pinoy Minero
21 Aug 14 05:08:13
RT @RGNonline: #Switzerland's Glencore $GLEN $GLN rewards investors with $1bn share buyback programme while $BHP & $RIO hang back http://t.…
RGN Online
21 Aug 14 05:06:41
#Switzerland's Glencore $GLEN $GLN rewards investors with $1bn share buyback programme while $BHP & $RIO hang back http://t.co/AH30C4r7vw
Bidness Etc
21 Aug 14 04:42:09
Shell, BP, BHP bids fetch $110 Million for Western Gulf Lease Sale 238 http://t.co/cwGoCbWvam $RDS.A $BP $COP $CVX $BHP
Sentifi UK_Market
21 Aug 14 04:00:25
$BHP the most discussed $FTSE Stock in the #financialcrowd today. Featured in @thisismoney http://t.co/mGdBZJQ7zK http://t.co/VLNh7z83E1
Evener Investment
21 Aug 14 03:40:55
RT @SeekingAlpha: Cramer's Lightning Round - Buy, Buy, Buy Best Buy (8/20/14) http://t.co/FYGLqv8rr3 $VALE $BBY $PII $PANW $BA $BHP $ATVI $…
Seeking Alpha
21 Aug 14 03:38:27
Cramer's Lightning Round - Buy, Buy, Buy Best Buy (8/20/14) http://t.co/FYGLqv8rr3 $VALE $BBY $PII $PANW $BA $BHP $ATVI $TTWO $CAB $HOG
Market Compass
21 Aug 14 03:07:29
$BHP: Andrew Mackenzie, CEO Of BHP Billiton Limited (ADR) (NYSE:BHP) Planned To ... http://t.co/jT6Hf1jCUN http://t.co/clF7bQbNJ1
NASDAQ
21 Aug 14 03:01:32
$BHP - EUROPE MARKETS: Raiffeisen Rallies, Miners Slip: Europe Movers http://t.co/tUnJ71xVGn
Sleek Money
21 Aug 14 02:52:29
BHP Billiton Limited Rating Lowered to Neutral at Citigroup Inc. $BHP http://t.co/yTPhpCzd4p
4-traders.com
21 Aug 14 02:50:02
EUROPE MARKETS: Raiffeisen Rallies, Miners Slip: Europe Movers http://t.co/lS0tcxP73m $RIBH $BHP $RIO $SAN $BLT $RIO $AZN $AAL $AHO $ILMN
Filipek
21 Aug 14 02:41:58
1/2 Wednesday's (20.08.14) top analyst upgrades and downgrades were $ATVI, $BHP, $CM, $CNP, $DNKN, $FFIV, $HTZ, $JBLU, $PNRA, and $SXC.
Rex Dwyer
21 Aug 14 02:35:28
Billion $ buyback? Save money for the race to the end of the balance sheet! I think $BHP will win. They get it. http://t.co/uWRIXH8DiV
luckypete
21 Aug 14 01:00:32
$dax 70 replace stop down we are close to $bhp target..
NASDAQ
21 Aug 14 00:45:28
$BHP - LONDON MARKETS: Miners Slide In London After Weak China PMI http://t.co/Fco7uDpXp7
Michael Thoroughgood
21 Aug 14 00:18:40
RT @CommSec: Aussie mkt up for 6th day. All Ords +0.1% & ~6-yr highs. Despite firm start for $BHP, mining stocks fell after Chinese data #a…
ASX small caps
21 Aug 14 00:10:39
RT @CommSec: Aussie mkt up for 6th day. All Ords +0.1% & ~6-yr highs. Despite firm start for $BHP, mining stocks fell after Chinese data #a…
Stock Updates
21 Aug 14 00:07:27
$BHP: Must-know: An overview of BHP Billiton http://t.co/XmjbuFcEp5 http://t.co/nLfPFqqMoC
luckypete
20 Aug 14 23:58:56
Today's STRAT let index rise close 1st TARGET, $BHP of 9385, wait for turn, bet down, stop 0.12% above last top. Good luck!
luckypete
20 Aug 14 23:49:31
$DAX closed 9314, P/M at 9340, Futures at 9333, $DOW rose late, that shud push ^GDAXI up a bit, $BHP AUS forecast, UP, 1st TARGET 9385
Krishan
20 Aug 14 23:35:21
RT @CommSec: Aussie mkt up for 6th day. All Ords +0.1% & ~6-yr highs. Despite firm start for $BHP, mining stocks fell after Chinese data #a…
Paul Banik
20 Aug 14 23:30:32
@jimcramer I agree with you about $BHP and/or $BBL, and your pick of $GOLD over $IAG looking at the key statistics of both gold miners.
CommSec
20 Aug 14 23:17:07
Aussie mkt up for 6th day. All Ords +0.1% & ~6-yr highs. Despite firm start for $BHP, mining stocks fell after Chinese data #ausbiz ^SD
				
				
By  +Follow August 19, 2013 7:30AM
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