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Freeport McMoRan (FCX -2.2%) shares slide after a Deutsche Bank report paints a bleak picture...

Freeport McMoRan (FCX -2.2%) shares slide after a Deutsche Bank report paints a bleak picture for China copper demand. Inventory pressure will outstrip demand recovery, the report says, and a trend toward restocking may not become evident until Q1 2013: "Without significant restocking activities, any rally in copper prices based on expectations will likely not be sustainable."
Comments (6)
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Agree, copper futures charts look moderately bearish.
    13 Aug 2012, 03:07 PM Reply Like
  • jw4golf
    , contributor
    Comments (340) | Send Message
     
    and of course fcx only does copper?
    13 Aug 2012, 03:11 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    No, but it is still used (to some extent) as a proxy for copper. Shares will likely trade in a range short-term.
    13 Aug 2012, 03:19 PM Reply Like
  • DENISO
    , contributor
    Comments (57) | Send Message
     
    FCX produces everything, not just Copper, so they shouldn't be put in that box.
    Yesterday, I was watching the pre-opening comments on Bloomberg Asia, and one report said that China was re-stocking its Copper inventory. They may be in a slow-down, but they long-ago decided to trade their paper money reserves for all kinds of hard natural resources. They like to buy Low, and do so, successfully.
    Regards,
    13 Aug 2012, 03:18 PM Reply Like
  • Atkins
    , contributor
    Comments (1038) | Send Message
     
    China does this all the time with ag commodities. They definitely buy low and are successful in doing so.
    15 Aug 2012, 06:31 PM Reply Like
  • maxnremie
    , contributor
    Comment (1) | Send Message
     
    To Deniso's point, china did this in the run up to the Beijing Olympics, buying everything they could from concrete to rebar copper cathode that just sat in warehouses. While prices went through the roof....
    14 Aug 2012, 02:20 AM Reply Like
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