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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
Paul Medica
28 Nov 14 11:39:25
Great profits today with those puts in a whole lotta oil names and $BHP. Anyone up for $2.00/gal gasoline?
dan oancea
28 Nov 14 11:00:43
RT @Cape_Lambert: $BHP + $RIO may be only 2 Aussie iron ore miners turning a profit at current prices - The Australian http://t.co/Dtyn5a14…
Fish4Bucks
28 Nov 14 09:42:37
60m $BHP Lower Trendline Area 51.700 #futures #stocks 12:42:28 PM http://t.co/lSMcM5bjRW Signals based on ... http://t.co/lSMcM5bjRW
liamkmac
28 Nov 14 09:26:00
BTC last portion of $BHP at 51.93 Been a good trade over the last 2 years
KeeneOnTheMarket.com
28 Nov 14 09:21:50
Profits today: Over $8,000 in $BHP Over $9,000 in $NFX Over $3300 in $ESV
Michael Giles
28 Nov 14 08:48:44
Many parallels between oil and iron ore right now, OPEC cartel acting like $RIO $BHP $FMG Vale in not cutting supply to match demand
Dr. Duru
28 Nov 14 08:40:23
Looks like iron ore finally not attention of commodity collapse as $RIO and $VALE are not "as ugly" as the likes of $FCX and $BHP gap down
KeeneOnTheMarket.com
28 Nov 14 08:20:03
7. EXIT to Close and filled: I sold 140 of 200 $BHP Feb 47.5 Puts for $1.00, paid $.58, up over $7500 in BHP, Next Offer: $1.15
Emylers
28 Nov 14 08:11:02
BHP Stock 51.81 Bhp Billiton Limited $BHP Hit a 52 week low of 51.69 Closing the day 10:45 at 51.81 -3.56 -6.4 http://t.co/w7SzKO6jOG
Emylers
28 Nov 14 08:10:40
$BHP BHP 51.81 Bhp Billiton Limited $BHP Hit a 52 week low of 51.69 Closing the day 10:45 at 51.81 -3.56 -6.43% Wit http://t.co/qeLsG3rYbn
George Maniere
28 Nov 14 07:58:25
"@liamkmac: @GeorgeManiereg Are you still short $BHP ? BOOOM !!" no I covered. Rats!
George Maniere
28 Nov 14 07:57:27
RT @liamkmac: @GeorgeManiereg Are you still short $BHP ? BOOOM !!
liamkmac
28 Nov 14 07:55:16
@GeorgeManiereg Are you still short $BHP ? BOOOM !!
Paul Medica
28 Nov 14 07:34:17
bought puts in $CVX, $NFX, $MRO, and $BHP. DIE oil die !!!!!
JoeCoolTrader
28 Nov 14 07:32:04
@WallStJesus Thanks for the tip on $BHP. Expect OPEC countries to cheat on production and slam oil prices further.
Long-Short Hedgie
28 Nov 14 07:29:31
$BHP: $52.22 ... #DOWN 5.7%... #LONG Feb 47.5 Puts $BHP (OTM yet).... Let BHP Billiton #CRASH
Harris Market Trends
28 Nov 14 07:28:10
SOLD some $BHP puts for an 86% profit
Fish4Bucks
28 Nov 14 07:16:01
60m $BHP Lower Trendline Area 52.030 #futures #stocks 10:15:52 AM http://t.co/lSMcM5bjRW Signals based on ... http://t.co/lSMcM5bjRW
Seeking Alpha
28 Nov 14 07:00:05
Feasting On The Stock Market Harvest http://t.co/RfZlK4jc0W $AMZN $APA $BHP $COH $CVX $EEM $EPP $FCX $GM $GOOGL $IBM $IEV $JJC $MAT $NBL
luckypete
28 Nov 14 06:59:03
And the indirect effect on EU stocks and indices lead by $DAX in Ger, UK OIL related contractors were down early, $BHP AUS -3.89% last nite.
JE$US
28 Nov 14 06:53:22
RT @jasonerwin_je: @WallStJesus $BHP BIG winner all out takin my $ and running. Much thanx for pointing out that one
martin pfaender
28 Nov 14 06:45:18
@Ponzi1945 yup look @ iron ore $BHP
je
28 Nov 14 06:42:48
@WallStJesus $BHP BIG winner all out takin my $ and running. Much thanx for pointing out that one
Large Void Bot
28 Nov 14 06:30:13
New 52wk Lows: $BBL $BHP $ECA $ESV $GGB $HAL $KOG $NADL $PGH
Joseph  Ibeh
28 Nov 14 06:15:48
RT @CBOE: Active puts @ CBOE; $AAPL 11/28/14 117, 118, Jan 95 & 100 $BHP 2/20/15 47.5
Market Int Center
28 Nov 14 06:07:35
BHP Billiton $BHP Trading Near $54.78 Support Level ( http://t.co/0LOQAX7cDP )
Large Void Bot
28 Nov 14 06:00:15
Popular: $EXXI, $UPS, $WFT, $OAS, $RSX, $TIBX, $JBLU, $BHP, $GDP, $GOL
Harris Market Trends
28 Nov 14 05:53:18
Going take a little off the oil short after the market opens $BHP
JE$US
28 Nov 14 05:35:15
YES SIR!! RT @Scalp2Swing: @WallStJesus those $BHP puts are going to rip this morning too. $$$ http://t.co/ZrStjnF2S7
Dan Hardwick
28 Nov 14 05:32:31
@WallStJesus those $BHP puts are going to rip this morning too. $$$
SMA
28 Nov 14 05:20:03
$BHP High Negative investor sentiment Nov 28, 8:19 AM ET, see chart at https://t.co/DWIF5WhqJy #sentiment #trading #stocks
Fish4Bucks
28 Nov 14 05:02:43
60m $BHP Lower Trendline Area 52.400 #futures #stocks 08:02:32 AM http://t.co/lSMcM5bjRW Signals based on ... http://t.co/lSMcM5bjRW
je
28 Nov 14 04:36:39
$BHP down over 5% & I'd be a very happy camper if it opens there too
Chess
28 Nov 14 04:08:20
RT @RiskReversal: Wednesday's Notable Options Activity: $XLE, $BHP, $CCI, $BRCM, $TMUS http://t.co/xkbFUqzGMc @EnisTaner
Dan Nathan
28 Nov 14 04:00:54
Wednesday's Notable Options Activity: $XLE, $BHP, $CCI, $BRCM, $TMUS http://t.co/xkbFUqzGMc @EnisTaner
Ticker Report
28 Nov 14 03:07:22
BHP Billiton Limited Upgraded by Clarkson Capital to “Buy” $BHP http://t.co/OjFysKZ20G
Fish4Bucks
28 Nov 14 03:02:27
60m $BHP Lower Trendline Area 52.400 #futures #stocks 06:02:13 AM http://t.co/lSMcM5bjRW Signals based on ... http://t.co/lSMcM5bjRW
Adrian Tout
28 Nov 14 02:38:40
Why I continue to remain bearish on commodities (and the #AUD): http://t.co/p1AxRqsu7a $BHP $RIO $FMG #crude #oil
luckypete
28 Nov 14 02:36:44
$DAX is down on OIL news, $BHP is -3.85% under early, HUGE drop biggest exporter oil world.. $xon will damage dow..
Bull and Bear Mash
28 Nov 14 02:09:53
Commented on: "Feasting On The Stock Market Harvest" http://t.co/TxoNs9nFqk $AMZN $APA $BHP $COH
John Michael
28 Nov 14 00:00:46
RT @SeekingAlpha: Feasting On The Stock Market Harvest http://t.co/fSWCKg30HR $AMZN $APA $BHP $COH $CVX $EEM $EPP $FCX $GM $GOOGL $IBM $IEV…
Quantpost Cnsmr Good
27 Nov 14 23:55:30
$COH $GM News: "Feasting On The Stock Market Harvest $AMZN $APA $BHP $COH $CVX …" http://t.co/L9XhCx6qOl Board view: https://t.co/GUKwmXlsa7
Quantpost Technology
27 Nov 14 23:55:30
$GOOGL $IBM News: "Feasting On The Stock Market Harvest $AMZN $APA $BHP $COH …" http://t.co/w4RhoGSYBd Board view: https://t.co/gvtUivQeu4
Quantpost Service
27 Nov 14 23:55:30
$AMZN News: "Feasting On The Stock Market Harvest $AMZN $APA $BHP $COH $CVX …" http://t.co/sv245QiPF5 Board view: https://t.co/dDf5fDn7Ez
Quantpost Basic Mats
27 Nov 14 23:55:30
$APA $CVX $FCX News: "Feasting On The Stock Market Harvest $AMZN $APA $BHP …" http://t.co/wLWNijTo6l Board view: https://t.co/syQU2aIAiZ
Seeking Alpha
27 Nov 14 23:55:25
Feasting On The Stock Market Harvest http://t.co/fSWCKg30HR $AMZN $APA $BHP $COH $CVX $EEM $EPP $FCX $GM $GOOGL $IBM $IEV $JJC $MAT $NBL
Stockaholics
27 Nov 14 23:17:28
Our Penny Stock Pick On $STTK Is Up 128.57% In 2 Days! Major Update: http://t.co/oR27rFfh2v $BHP $CADX $BSX
Pete
27 Nov 14 23:07:16
@toodalooMTFK $BHP and many called 50 bucks when BHP tagged 39 plus in august on earnings .. the chart tells a story http://t.co/iQW6wf2zUM
Ben
27 Nov 14 20:28:01
WTF has happened to #Santos $STO today?! $BHP being hammered too. Bloody hell.
Greg Atkinson
27 Nov 14 18:56:25
$BHP down near $30..now that's too tempting to resist :)
				
				
By  +Follow August 19, 2013 7:30AM
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