Metals and mining stocks rose sharply Friday after a report indicated China was likely to ease pandemic restrictions, setting the stage for more commercial activity.
Freeport McMoRan (NYSE:FCX) jumped 13% to a five-month high as copper prices surged on reports that Zeng Guang, a former chief scientist at the Chinese Center for Disease Control and Prevention, said he expected to see "significant" changes to the country's zero-COVID approach in 2023, The Wall Street Journal reported. Guang spoke at a Citigroup conference.
Today's movers include:
- Alcoa (AA) +12%
- Eldorado Gold (EGO) +12%
- BHP Group (BHP) +9.8%
- Harmoney Gold Mining +13%
- VALE SA +9.7%
- Rio Tinto (RIO) +9.9%
- TECK Resources (TECK) +10%
- Century Aluminum (CENX) +13%
- Southern Copper (SCCO) +11%
- Also on watch: (HBM), (OTCPK:FQVLF), (OTCQX:AAUKF), (OTCQX:NGLOY), (OTCPK:GLCNF), (OTCPK:GLNCY)
- Iron ore futures also surged, with January iron ore on China's Dalian Commodity Exchange (SCO:COM) ending daytime trade +4.9% to 662.50 yuan/metric ton ($91.35), and December iron ore on the Singapore Exchange +5.5% at $86.20/ton.
- ETFs: (NYSEARCA:COPX), (CPER), (JJC), (JJCTF)
- Copper prices also are supported by the latest disruption at the huge Las Bambas copper mine in Peru, where operations are being reduced because of recent blockades.
- Also, copper stocks in LME warehouse fell by 5,375 metric tons to 88.6K tons, the lowest in more than seven months.
- LME aluminum, zinc, lead, nickel and tin also traded higher.
- Copper futures have fallen ~30% from a March peak, but Freeport McMoRan CEO Richard Adkerson said recently the weak pricing does not reflect a "strikingly tight" physical market for the metal.