There are mutterings about global recession and that affects raw material prices.
Copper miner Freeport-McMoRan’s Q3 profits plunged, thanks to declining prices for the metal, Matt writes.
Why it matters: Because of its widespread usage in industrial applications, construction and electrical wiring, copper prices are seen as a bellwether for global macroeconomic activity.
Prices for the metal are especially sensitive to Chinese industrial activity.
By the numbers: The miner’s profits declined more than 70% from last year’s third quarter to $404 million.
The backdrop: Global copper prices have fallen 30% over the 12 months.
What they’re saying: Headwinds dragging down copper demand include “the strength of the U.S. dollar, the Fed and central banks’ tightening, concerns about China dealing with COVID and its property section, and then the serious problems in Europe coming out of the Ukraine situation,” Freeport CEO Richard Adkerson told analysts.