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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
Mining HardAssets
23 Oct 14 10:24:02
RT @Metalbanker: Can mining legend Mick Davis do it all again? $BHP $XTA.L $GLEN.L #Niobium | The Australian http://t.co/n3dk4EgPaB
Dividend Master
23 Oct 14 09:57:12
iron ore now $79+ in China today ... insane bulls can't get $VALE $RIO $CLF $BHP green with that sticking in their face
NASDAQ
23 Oct 14 09:39:27
$BHP - LONDON MARKETS: FTSE Rides European Optimism, But Tesco Slumps http://t.co/rQ9JBvHQ9v
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Kirill Klip
23 Oct 14 09:12:51
RT @Metalbanker: Can mining legend Mick Davis do it all again? $BHP $XTA.L $GLEN.L #Niobium | The Australian http://t.co/n3dk4EgPaB
Anthony Allyn
23 Oct 14 07:46:26
Targets tend to overshoot in a volatile market $BHP http://t.co/44TylSD0hd
Sufiy
23 Oct 14 07:33:11
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…
InternationalLithium
23 Oct 14 07:27:32
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…
Kirill Klip
23 Oct 14 07:14:51
M&A Watch: Los Azules #Copper - Acquisitions signal a turning market for #miners. $MUX $TNR.v $GDX $FCX $BHP http://t.co/6ahvUyKSw2
TP Strategic Partner
23 Oct 14 06:42:16
$CAT World mining continues to show a rebound. Expect Coal prices to rise 60% in 18 months, Copper, Iron Ore to follow. Buy $BHP $RIO $BTU
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23 Oct 14 06:30:42
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Kirill Klip
23 Oct 14 06:27:02
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…
Sufiy
23 Oct 14 05:17:43
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…
Sleek Money
23 Oct 14 04:07:48
Jefferies Group Lowers BHP Billiton Limited to Hold $BHP http://t.co/qCzgoVNqAh
TNR Gold Corp
23 Oct 14 03:14:32
M&A Watch: Los Azules #Copper - Acquisitions signal a turning market for #miners. $MUX $TNR.v $GDX $FCX $BHP http://t.co/W2Hyhs54pg
Ro Patel
23 Oct 14 02:18:12
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Jo Masters
23 Oct 14 01:56:49
RT @ClydeCommods: The #ironore giants, $RIO and $BHP, may have won the 1st round, final victory looks far off. http://t.co/cQdhFvJL4S http:…
mongo
23 Oct 14 01:42:24
RT @CommSec: All Ords -3.3pts today. $BHP & $RIO wiped out 9pts from the index while big 4 banks added 8.5pts #ausbiz ^SD
Shareswatch.com.au
23 Oct 14 01:29:18
RT @CommSec: All Ords -3.3pts today. $BHP & $RIO wiped out 9pts from the index while big 4 banks added 8.5pts #ausbiz ^SD
CommSec
23 Oct 14 00:57:34
All Ords -3.3pts today. $BHP & $RIO wiped out 9pts from the index while big 4 banks added 8.5pts #ausbiz ^SD
NASDAQ
23 Oct 14 00:56:24
$BHP - LONDON MARKETS: Tesco Slumps, Sends FTSE Lower For First Time In Three Days http://t.co/upZPZ2Nkyy
Sissi Bellomo
23 Oct 14 00:55:07
RT @ClydeCommods: The #ironore giants, $RIO and $BHP, may have won the 1st round, final victory looks far off. http://t.co/cQdhFvJL4S http:…
Stockaholics
23 Oct 14 00:39:51
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $BHP $CADX $BSX
Clyde Russell
23 Oct 14 00:20:02
The #ironore giants, $RIO and $BHP, may have won the 1st round, final victory looks far off. http://t.co/cQdhFvJL4S http://t.co/GBp9zw3VFv
luckypete
22 Oct 14 23:16:42
$DAX Closed 8940, A/M Went down 35 pts following $dow moves, P/M 8898, FUT 8858 DROPPING FROM 75 pts lower AUS $BHP TO 8825 A BAD HAIR DAY
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
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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
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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…
				
				
By  +Follow August 19, 2013 7:30AM
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