Freeport McMoRan Focus on Value, Not Copper Volatility; China Prices Up

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According to a Barron’s report, while copper investors are worried about costs and copper price volatility – and they should be – Freeport McMoRan seems to be concerned with “creative ways to unlock value.”

A few of the things the company is focusing on, according to the CEO of Freeport-McMoRan Copper & Gold’s (FCX) energy division: producing oil assets backed by hedges, creatively financing longer-term U.S.-based copper projects, and reducing debt “to a targeted level of~$12b over the next three years.”

Weakening prices changed direction when the price of Chinese copper bar rose 0.6 percent on Monday, September 16. The price of Chinese copper wire is back up, rising by 0.6 percent yesterday. Following a 0.5 percent rise on Monday, the Chinese copper cash price closed higher. The price of Chinese bright copper scrap remained essentially flat.

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The price of US copper producer grade 122 weakened by 0.3 percent. The price of US copper producer grade 110 saw a 0.3 percent decline. The price of US copper producer grade 102 declined 0.2 percent. The Japanese copper cash price saw little price change yesterday.

On the LME, the copper 3-month price fell 0.2 percent to $7,060 per metric ton. Also on the LME, the primary copper cash price declined 0.2 percent to $7,028 per metric ton.

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