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First Trust ISE Global Copper Index ETF (CU)

  • Oct. 23, 2012, 4:51 PM
    A growing number of analysts and traders believe the days of copper’s decade-long scarcity could be coming to an end, as the red metal's biggest consumer - China - is struggling and miners are beginning to pick up production. The ICSG predicts mined supply of copper will increase by 6.4% next year, the biggest rise since the mid-1990s.
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  • Oct. 17, 2012, 2:53 PM
    Copper prices could trade lower next year in an uncertain economic outlook, but the consensus among metals traders and mining execs is that the move is more likely to be a grind than a collapse as supplies remain tight. Even though production is rising, inventories remain low and the mining industry is expected to again fall short of its promised production.
  • Oct. 10, 2012, 8:27 AM
    More signs of a mining boom turned bust, Chinalco (ACH) looks set to cut the size of the Hong Kong IPO of its Peruvian copper mining unit to about $400M from $800M (which was a cut from the initial $1B). A market in short supply no more: Chinese copper consumption is set to shrink this year, says Simon Hunt.
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  • Oct. 9, 2012, 3:22 PM
    Copper consumption in China is expected to drop 8.5% to 5.6M metric tons this year, contracting for the first time since 2008 before rebounding in 2013, Simon Hunt says: "The safety valve of exports has gone, the domestic economy is slowing down, they have a problem of surplus capacity and cash is extraordinarily tight... There are no signals of a recovery in heavy industry and manufacturing."
  • Aug. 22, 2012, 2:58 AM
    BHP Billiton (BHP): H2 profit before items -35% to $7.16B vs. consensus of $6.96B. Abandons $20B Olympic Dam copper expansion and will look at a "less capital intensive option." Won't approve any new projects until at least mid-2013. It's the biggest sign of how China's slowdown has stalled the global mining boom. (PR)
  • Jul. 18, 2012, 5:53 PM
    Analysts are slashing predictions of a copper glut as producers from Chile to Indonesia contend with aging mines and strikes at a time of record demand. The global surplus will total 18.5K metric tons, according to a Bloomberg survey, 85% less than a January forecast of 124K tons; the survey also says prices will rally as much as 14% to $8,700/ton by year's end.
  • Jun. 12, 2012, 5:07 AM
    Some mining companies (including BHP and RIO) that have relied mostly on surface mining are now going deeper, allowing them to continue using mining, processing and transport infrastructure even after the surface deposits are depleted. New technologies and the high price of commodities are making the unusually-deep mines financially feasible, but going deeper isn't without its risks.
  • Jun. 8, 2012, 5:54 PM
    Copper closed the week at a six-month low, as traders shed their initial positive reaction to China's rate cut to focus on the move as a sign of weak Chinese economic growth. Barclays says any boost in demand from Beijing’s pro-growth measures might not be felt until Q4, and the “magnitude of support... is not seen as being anywhere near the same scale as the stimulus of 2008-09."
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  • May. 24, 2012, 5:25 AM
    U.S. manufacturers are opposing JPMorgan's (JPM) plans to launch an ETF backed by physical copper, telling the SEC the fund would "grossly and artificially inflate prices" and "wreak havoc on the US and global economy." JPM's regulatory filings suggest its ETF could hold 61,800 tons, or 27% of the copper held in the London Metal Exchange’s global network of warehouses.
  • May. 3, 2012, 4:50 PM
    With LME copper stocks at their lowest level since 2008 and China bursting with the stuff amidst lower domestic demand, the country is set to export large amounts of the metal over the coming months. Analysts believe there are 500-600K tons of the copper in Shanghai warehouses being used as loan collateral (total 2012 mine supply will be 240K tons).
  • Apr. 23, 2012, 4:33 PM
    Weakening manufacturing in China and the eurozone spelled lower prices for copper, as the industrial metal fell 2% to settle at $3.626/pound for its lowest ending price since Jan. 11. Add diminished expectations for imminent QE from the Fed, and prices could continue to fall from here, TD Securities’ Bart Melek says.
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  • Apr. 19, 2012, 8:30 AM
    More on Freeport McMoRan (FCX): This can be a tough business sometimes as costs don't pay attention to the price of the metal being mined: Q1 cash costs $1.26/lb. vs.$0.79 a year ago, costs for 2012 expected to be $1.43. Earnings off 49% Y/Y. Shares +1% premarket. (PR)
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  • Apr. 15, 2012, 9:22 PM
    Struggling to lift output even with near-record prices, Chile's Codelco - the world's top copper producer (accounts for 1/3 of global supply) - was forced to buy the metal from outside sources to meet delivery contracts earlier this year. The purchases were small when measured against Codelco's total production, but imagine Saudi Arabia needing to buy crude to meet its deliveries.
  • Apr. 13, 2012, 10:53 AM
    A day after rallying strongly, many commodity names are selling off as a result of top customer China's soft GDP report. Copper (CU -2.4%), silver (SLVP -1.8%), and gold (PSAU -1.6%) miners are all getting hit, as are steelmakers (SLX -1.9%) and some aluminum names (AA -2.2%, NOR -3.7%).
  • Apr. 13, 2012, 8:51 AM
    JPMorgan files to list a copper-backed ETF. Copper-backed securities listed in late 2010 were thought the contribute to the metal's record-breaking run in early 2011 as the funds ate up supply in an already tight market.
  • Apr. 12, 2012, 2:49 PM
    It's a good day to own commodity stocks. Alcoa's (AA +2.5%) strong Q1 and China optimism is not only lifting aluminum names, but also makers of steel (SLX +4.7%), copper (CU +4.1%), silver (SLVP +2.7%), and gold (PSAU +3.8%), among other things.
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CU Description
The First Trust ISE Global Copper Index Fund is an exchange-trade fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of an equity index called the ISE Global CopperTM Index.
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