Copper traded largely sideways in November. The LME (London Metals Exchange) three-month copper contract fell ~0.3% during the month. While prices fell to almost $6,700 per metric ton in the middle of the month, copper rose near the crucial $7,000 per metric ton price level. However, copper lost its sheen last week and closed the month on a flat note.
With copper prices trading sideways this month, copper miners also had a dull month. Looking at leading copper miners, Freeport-McMoRan (FCX) fell 0.42% in November, while Glencore (GLEN-L) fell 7.0%. Southern Copper (SCCO) fell 2.0% in November. However, First Quantum Minerals (FM) rose 2.8% in the month. Antofagasta (ANTO) fell 4.7% in November.
Overall, 2017 has been a decent year for copper. Most copper miners are trading with strong yearly gains. Freeport has been an exception. Its stock didn’t participate in the rally because markets are apprehensive about its Indonesia operations. Although Freeport announced a framework in August to end its long-standing impasse with the Indonesian government, the two sides are still negotiating some of the key points, especially the valuation.
In this series, we’ll look at some of the factors that impacted copper prices in November. We’ll also look at the key events and data points that copper investors should follow in December.
Let’s start by analyzing some of the factors that impacted copper prices in November.