Freeport McMoRan falls 15% this week as copper flops to lowest since late July

Sep. 01, 2022 2:58 PM ETFreeport-McMoRan Inc. (FCX), HG1:COMSCCO, BHP, TECK, JJCTF, COPX, RIO, CPER, HBM, JJCBy: Carl Surran, SA News Editor11 Comments

Copper pipes on warehouse.

Axe_Olga/iStock via Getty Images

Freeport McMoRan (NYSE:FCX) is one of Thursday's five biggest losers on the S&P 500, -5.4% and down ~15% during the past week, with copper prices falling again on worries that Europe's energy crisis, tighter Federal Reserve monetary policy and China's harsh COVID-19 lockdowns will hurt demand for metals and global economic growth.

After a recent rebound, copper has reversed sharply this week, with Comex front-month copper (HG1:COM) closing Thursday -2.9% at $3.4145/lb, the lowest settlement value since July 26.

Among other copper producers: (SCCO) -3.3%, (TECK) -4.5%, (HBM) -6.4%, (RIO) -3.6%, (BHP) -3.1%.

ETFs: (COPX), (CPER), (JJC), (JJCTF)

China reported its factory activity contracted in August, according to a private survey, while nearly 70 Chinese cities reported declines in new home prices, the most since the start of the pandemic.

The Chinese metropolis of Chengdu will lock down its 21M residents to contain a COVID-19 outbreak, the country's biggest city to shut down since Shanghai's two-month lockdown earlier this year.

Also weighing on copper and other industrial metals is the dollar, which trades near two-decade highs against other major currencies.

The inflation trade is dead, and Freeport McMoRan (FCX) shares have further to fall, Josh Arnold writes in a bearish analysis newly published on Seeking Alpha.

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