So far, Freeport-McMoRan (FCX) is having a terrible year. Based on the closing prices on August 9, the stock has lost 18.8% in 2018. Other copper miners have also seen losing investors’ interest amid falling copper prices. Southern Copper (SCCO) and Antofagasta (ANTO) have fallen 2.5% and 2.9%, respectively, in 2018. Glencore (GLEN-L) received a subpoena from the Department of Justice earlier this year. Glencore has fallen 15.3% year-to-date.
Base metals have also come under pressure after a strong start in 2018. Metals have looked vulnerable amid US-China trade war concerns. Copper is hovering near the $6,200 per metric ton level. Although copper prices have bounced back slightly after briefly dipping below the psychologically crucial $6,000 per metric ton level, copper is way below its 2018 highs. Earlier this year, concerns about a possible supply disruption at BHP Billiton’s (BHP) Escondida helped lift copper prices above $7,000 per metric ton.
Coming back to Freeport, the stock has underperformed some of the other copper miners. In this series, we’ll discuss Freeport’s bullish and bearish drivers. We’ll also see what’s been ailing Freeport this year and whether the stock can recover from its recent slump.
Next, we’ll discuss Freeport’s bearish drivers.