Friday was a rough day for base metals as declines in prices of iron ore, copper, zinc, and lead, among others, have sent investors in the mining and metals industry packing and looking for a way out.
Mining.com reported on Friday that the price of copper dropped over three percent to $3.03 per pound. This drop has put an end to copper’s two-month rising streak. Zinc also plunged more than three percent to $3,094, and iron ore dropped almost three percent to a three-week low of $73.70 per ton. Meanwhile, lead took the hardest hit with its four-percent drop to $2,311 per ton.
The price drops in base metals have harmed mining companies as investors try to escape from the train wreck. Shares of top mining companies BHP Billiton (NYSE:BHP) and Vale (NYSE:VALE.P) fell 3.2 percent and 4.2 percent, respectively, in New York.
Back in August, BHP Billiton announced that it will sell its U.S. oil and gas assets after deciding that assets under said field were now “non-core.” But its offshore oil operations located in the Gulf of Mexico will remain in BHP Billiton’s hands. On the other hand, Vale, under new CEO Fabio Schvartsman’s administration, was reported to be looking for possible acquisitions to diversify its portfolio.
British-Australian mining company Rio Tinto’s (NYSE:RIO) New York shares dropped 4.9 percent. At the start of September, Rio Tinto has sold its Hunter Valley coal operations to Yancoal for $2.69 billion, projecting its cash position to a good spot. Anglo American (LON:AAL) had a 3.1 percent decrease in its NYSE stocks. However, its year-to-date gains remain at almost 30 percent.
American copper miner Freeport-McMoRan (NYSE:FCX) took a 6.5 percent nosedive. It recently finished talks with the Indonesian government regarding a majority stake in the Grasberg mine. Shares of Switzerland’s Glencore also went down but only by one percent. Glencore (LON:GLEN) recently agreed to split with Qatar the purchase of a 19.5 percent stake in Russia’s Rosneft. The deal is valued at €10.2 billion or $11 billion. Glencore has stated that it will pay €300 million, while the Qatar Investment Authority will pay the remaining balance.
Arizona’s Southern Copper (NYSE:SCCO) and British Columbia’s Teck Resources (NYSE:TECK) were not spared from the impact of the price drops as well. Their NYSE stocks decreased 3.6 percent and 5.5 percent, respectively.
6 enterprise tech trends to consider in 2019 and beyond
Here are the tech trends that could bring groundbreaking changes to businesses this 2019 and even the years to come.
Securing consumer rights in a cashless society
The new EU payment directive might spark concern about a move away from cash—but blockchain technology could protect consumers.
Back to basics: The best investments that you should be looking into
Everyone is trying to make money, and one way to do so is through investing in businesses. Before you dive...
Tinctures reign supreme in CBD industry for simple and versatile uses
CBD tinctures have become the product of choice for many users as they are easily customizable according to their individual...
Should you bet on communication services stocks in 2019?
While the communication services sector is a relatively new market segment, it is expected to post revenue growth for 2019.
- Sponsored2 days ago
The fight against cybercrime makes cybersecurity the top investment choice for 2019
- Business3 days ago
How blockchain can solve the broken link of supply chain logistics
- Business4 days ago
A guide to investing in your first commercial property
- Commodities5 days ago
What gold investors should expect this 2019
- Crypto4 days ago
Bitcoin welcomes 2019 with an unexpected price surge
- Business3 days ago
More Chinese middle class buying lower-priced US houses
- Economy5 days ago
Japan PMI surveys reveal more upbeat sector of global economy
- Featured5 days ago
Here’s an investing lesson to learn from Puerto Rico