‘Strikingly Tight’ Copper Market Belies Price Drop, Miner Says – by Yvonne Yue Li and James Attwood (Bloomberg News – October 20, 2022)

https://www.bnnbloomberg.ca/

(Bloomberg) — Copper prices don’t reflect a “strikingly tight” physical market, according to the world’s largest publicly-traded producer of the metal used in everything from computer chips to electric vehicles.

Macroeconomic headwinds have pushed copper futures down almost 30% from a peak in March, despite brisk demand and shrinking inventories that are nearing historical lows.

It’s “striking how negative financial markets feel about this market and yet the physical market is so tight,” said Richard Adkerson, chief executive officer of Freeport-McMoRan Inc.

“We’re not seeing customers scaling back orders. Customers are really fighting to get products,” Adkerson said Thursday during a conference call with analysts after the miner reported adjusted third-quarter per-share profit that exceeded estimates.

For the rest of this article: https://www.bnnbloomberg.ca/strikingly-tight-copper-market-belies-price-drop-miner-says-1.1835394