US-based copper miner Freeport-McMoRan (FCX) has seen selling pressure over the last two weeks. It reached its high this month, $18.20, on June 6. However, it has come under pressure since then and has fallen for the last five trading sessions.
Year-to-date, Freeport-McMoRan had fallen 11.2% as of June 18. The stock has underperformed most other copper miners (XME), with Southern Copper (SCCO) and Teck Resources (TECK) rising 3.7% and 2.1% so far this year.
On June 7, we noted that while Freeport-McMoRan stock’s long-term fundamentals looked intact, it could face pressure in the short term. The stock has fallen 8% since then. Let’s see what’s been weighing on Freeport stock.
Earlier this month, copper prices spiked on expectations of supply-side issues at the BHP-operated (BHP) Escondida mine. However, copper has now fallen below $7,000 per metric ton on the London Metals Exchange. The metal, which rose sharply for two years, has had a hard time staying above $7,000 per metric ton this year. In the next article, we’ll look at some factors that have impacted copper over the last two weeks.