Latest news with #Freeport-McMoRan
Winnipeg Free Press
6 hours ago
- Business
- Winnipeg Free Press
Eby says B.C. insulated from Trump copper tariff, cites need for trade diversity
VICTORIA – British Columbia Premier David Eby says an incoming 50 per cent United States tariff on some copper products highlights the need for diversified markets. He says the tariffs will affect provinces differently, pointing out that most of B.C.'s copper goes to Asia, keeping the province 'insulated' from tariff impact. But he says Ontario and Quebec are 'not in a similar' position. Natural Resources Canada says B.C. accounts for almost 46 per cent of mined copper production in Canada. The tariffs announced by the White House on Wednesday that are to come into effect on Friday appeared to fall short of some market expectations by exempting copper concentrate, anodes and cathodes that make up a large part of Canada's exports. Natural Resources Canada data suggest concentrates made up 36 per cent of Canada's total $9.3 billion in exports of copper and copper-based products in 2023. The market appeared to expect a tougher line from Trump on copper that could have kept prices at a premium, but instead producer Freeport-McMoRan saw its stock fall 9.5 per cent. 'The good news for British Columbians is that a copper tariff will have, we're hopeful, a minimal impact on British Columbia, because we have diversified markets here,' said Eby at an unrelated news conference on Wednesday. 'The majority of the copper concentrate that's produced here in British Columbia goes to Asian markets. And thank goodness for that. But it also underlines why we need to ensure diversification so that we're insulated from these kinds of attacks from the president.' This report by The Canadian Press was first published July 30, 2025.
Straits Times
8 hours ago
- Business
- Straits Times
Trump shocks markets with scaled-back copper tariff, US prices plunge
Sign up now: Get ST's newsletters delivered to your inbox WASHINGTON - The United States will impose a 50 per cent tariff on copper pipes and wiring, President Donald Trump said on July 30, but details of the levy fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates and cathodes. The surprise move dragged down US copper prices more than 17 per cent on the Comex exchange and unwound a premium over the London global benchmark that had grown in recent weeks, with shipments diverted there in anticipation of higher domestic prices. 'Markets are now busily repricing refined copper much lower after Trump's epic backflip on his own import tariff policy,' said Mr Tom Price, an analyst at the London brokerage Panmure Liberum. 'Someone must have finally got through to (Mr Trump) that the US economy simply can't afford this new trade-hit.' Freeport-McMoRan is likely to be among the most harmed by the trimmed tariff, according to RBC Capital Markets, with Hudbay Minerals, Arizona Sonoran and others developing mines in the country also affected. Mr Trump first teased the tariff in early July, implying that it would apply to all types of the red metal, ranging from cathodes produced by mines and smelters to wiring and other finished products. Yet in a proclamation released by the White House, the administration said the tariff will apply starting on Aug 1 only to pipes, tubes and other semi-finished copper products, as well as products that copper is heavily used to manufacture, including cable and electrical components. Top stories Swipe. Select. Stay informed. World Canada intends to recognise Palestinian state at UN General Assembly: Carney Business US Fed holds rates steady despite Trump's pressure, with two governors dissenting Singapore Regional eco-tours, more full-time staff: S'pore's Nature Society restructures to boost conservation Singapore NEA green-lights activities, fishing in waters near Tuas Second Link after chemical tank accident Multimedia 60 years, 60 items: A National Day game challenge Business South-east Asia's transshipments a target as US takes aim at China's supply chains Singapore School, parents on alert after vape peddlers approach primary school pupil Singapore Escape, discover, connect: Where new memories are made The move aids manufacturers, but does little to boost the constrained US copper mining industry, which for years has asked Washington for permitting reform or other steps that could fuel growth. 'Copper is being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States,' Mr Trump said in his proclamation. The tariffs will exclude copper scrap and copper concentrates, mattes, cathodes and anodes, some of the main products of copper mines and smelters. The move is essentially a boost for Chile and Peru, two of the world's largest copper miners and major suppliers to the United States. The tariff details sparked a 'massive market surprise,' said Ms Natalie Scott-Gray, senior metals analyst at the consultancy group StoneX, adding that she expects US copper prices to fall further. Mr Anant Jatia, founder and chief investment officer at Greenland Investment Management, a hedge fund specialising in commodity arbitrage trading, told Reuters he expects London copper prices to surpass US prices in the short term as American inventories build. More possible The measure came after a US investigation under Section 232, which Mr Trump ordered in February. The report was delivered to the White House on June 30 by Commerce Secretary Howard Lutnick, according to the proclamation. Mr Trump said he may still impose further tariffs, and has asked Mr Lutnick to provide an update on the domestic copper market by June 2026. At that point, Mr Trump will evaluate whether to impose a phased universal import duty on refined copper of 15 per cent starting in 2027, and of 30 per cent starting in 2028, he said. Along with tariffs, the order calls for steps to support the domestic copper industry, including requiring 25 per cent of high-quality scrap produced in the US to also be sold within the country. Freeport, the largest US copper producer, said it would comment after it reviewed Mr Trump's order in detail. Chile's Codelco, the world's biggest copper producer, praised the exclusion of cathodes as a positive for the company and for Chile, which is the top supplier of refined copper to the US. BHP, which operates the world's largest copper mine in Chile, and Antofagasta, which ships copper from Chile to the US and wants to build a US copper mine, did not immediately reply to requests for comment. REUTERS
Nikkei Asia
8 hours ago
- Business
- Nikkei Asia
Trump shocks markets with scaled-back copper tariff, sending US prices plunging
(Reuters) -- The U.S. will impose a 50% tariff on copper pipes and wiring, President Donald Trump said on Wednesday, but details of the levy fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates and cathodes. The surprise move dragged down U.S. copper prices more than 17% on the Comex exchange and unwound a premium over the London global benchmark that had grown in recent weeks, with shipments diverted there in anticipation of higher domestic prices. "Markets are now busily repricing refined copper much lower after Trump's epic backflip on his own import tariff policy," said Tom Price, an analyst at the London brokerage Panmure Liberum. "Someone must have finally got through to [Trump] that the U.S. economy simply can't afford this new trade-hit." Freeport-McMoRan is likely to be among the most harmed by the trimmed tariff, according to RBC Capital Markets, with Hudbay Minerals, Arizona Sonoran and others developing mines in the country also affected. Trump first teased the tariff in early July, implying that it would apply to all types of the red metal, ranging from cathodes produced by mines and smelters to wiring and other finished products. Yet in a proclamation released by the White House, the administration said the tariff will apply starting this Friday only to pipes, tubes and other semi-finished copper products, as well as products that copper is heavily used to manufacture, including cable and electrical components. The move aids manufacturers, but does little to boost the constrained U.S. copper mining industry, which for years has asked Washington for permitting reform or other steps that could fuel growth. "Copper is being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States," Trump said in his proclamation. The tariffs will exclude copper scrap and copper concentrates, mattes, cathodes and anodes, some of the main products of copper mines and smelters. The move is essentially a boost for Chile and Peru, two of the world's largest copper miners and major suppliers to the United States. The tariff details sparked a "massive market surprise," said Natalie Scott-Gray, senior metals analyst at the consultancy group StoneX, adding that she expects U.S. copper prices to fall further. Anant Jatia, founder and chief investment officer at Greenland Investment Management, a hedge fund specializing in commodity arbitrage trading, told Reuters he expects London copper prices to surpass U.S. prices in the short term as American inventories build. The measure came after a U.S. investigation under Section 232, which Trump ordered in February. The report was delivered to the White House on June 30 by Commerce Secretary Howard Lutnick, according to the proclamation. Trump said he may still impose further tariffs, and has asked Lutnick to provide an update on the domestic copper market by June 2026. At that point, Trump will evaluate whether to impose a phased universal import duty on refined copper of 15% starting in 2027, and of 30% starting in 2028, he said. Along with tariffs, the order calls for steps to support the domestic copper industry, including requiring 25% of high-quality scrap produced in the U.S. to also be sold within the country. Freeport, the largest U.S. copper producer, said it would comment after it reviewed Trump's order in detail. Chile's Codelco, the world's biggest copper producer, praised the exclusion of cathodes as a positive for the company and for Chile, which is the top supplier of refined copper to the U.S. BHP, which operates the world's largest copper mine in Chile, and Antofagasta, which ships copper from Chile to the U.S. and wants to build a U.S. copper mine, did not immediately reply to requests for comment.
Nikkei Asia
10 hours ago
- Business
- Nikkei Asia
US imposes 50% tariff on copper pipes and wiring, Trump says
(Reuters) -- The United States will impose a 50% tariff on copper pipes and wiring, President Donald Trump said on Wednesday, but details of the levy fell short of the sweeping restrictions expected and left out copper input materials such as ores, concentrates and cathodes. U.S. Comex copper futures plunged 19.5% after the announcement, quickly unwinding a premium over the London global benchmark that had grown in recent weeks as traders had assumed U.S. copper mines would see a financial benefit from the tariff. Trump first teased the tariff in early July, implying that it would apply to all types of the red metal, ranging from cathodes produced by mines and smelters to wiring and other finished products. Yet in a proclamation released by the White House, the administration said the tariff will apply only to semifinished copper products and other products that copper is heavily used to manufacture, starting on Friday. "Copper is being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States," Trump said in his proclamation. The tariffs will exclude copper scrap and copper concentrates, mattes, cathodes and anodes, some of the main products of copper mines and smelters. The move is essentially a boost to Chile and Peru, two of the world's largest copper miners. "The newly announced copper tariffs are far from universal tariffs that markets were concerned about," said Gracelin Baskaran, director of the critical minerals security program at the Center for Strategic and International Studies. "It's less punitive than markets initially expected." The measure came after a U.S. investigation under Section 232, which Trump ordered in February. The report was delivered to the White House on June 30 by Commerce Secretary Howard Lutnick, according to the proclamation. Trump said he may still impose further tariffs, and has asked Lutnick to provide an update on the domestic copper market by June 2026. At that point, Trump will evaluate whether to impose a phased universal import duty on refined copper of 15% starting in 2027, and of 30% starting in 2028, he said. Along with tariffs, the order calls for steps to support the domestic copper industry, including requiring 25% of high-quality scrap produced in the U.S. to also be sold within the country. Freeport-McMoRan, the largest U.S. copper producer, said it would comment after it reviewed Trump's order in detail. Chile's Codelco, the world's biggest copper producer, praised the exclusion of cathodes as a positive for the company and for Chile, which is the top supplier of refined copper to the U.S. BHP, which operates the world's largest copper mine in Chile, and Antofagasta, which ships copper from Chile to the U.S. and wants to build a U.S. copper mine, did not immediately reply to requests for comment.
Globe and Mail
6 days ago
- Business
- Globe and Mail
Freeport-McMoRan's Earnings Call Highlights Robust Growth
Freeport-McMoRan, Inc. ((FCX)) has held its Q2 earnings call. Read on for the main highlights of the call. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Freeport-McMoRan's recent earnings call showcased a robust financial performance, marked by significant achievements such as the early start-up of the Indonesian smelter and progress in the leach initiative. Despite these successes, the company faces challenges, including revisions in gold production forecasts and concerns related to tariffs and Indonesian operations. Strong Financial Performance Freeport-McMoRan reported a strong quarterly EBITDA of $3.2 billion and operating cash flows of $2.2 billion. This impressive performance was driven by robust copper and gold sales, alongside improved production costs, highlighting the company's operational efficiency and market strength. Indonesian Smelter Start-Up The company achieved a significant milestone by starting up its new copper smelter in Indonesia a month ahead of schedule. This advancement positions Freeport-McMoRan to reach design capacity by the end of the year, underscoring its commitment to enhancing production capabilities. Leach Initiative Progress Freeport-McMoRan's leach initiative at the Morenci mine is showing promising results. The field trial with an internally developed leach additive has the potential to produce 800 million pounds per annum, indicating a significant boost in production efficiency. U.S. Copper Premium Increase The U.S. copper premium has tripled from second-quarter levels, providing Freeport-McMoRan with additional margins and cash flows. This increase reflects the company's strategic positioning in the U.S. market, enhancing its financial outlook. Continued Commitment to Shareholder Returns In line with its commitment to shareholder returns, Freeport-McMoRan purchased 1.5 million shares in Q2, totaling 2.9 million shares in the first half of the year. The company maintains a target of allocating 50% of excess cash flow for shareholder returns, demonstrating its dedication to rewarding investors. Gold Production Revision The company revised its near-term outlook for gold production, indicating a 15% reduction in expected 2025 gold production due to adjustments in the Grasberg Block Cave model. This revision highlights challenges in meeting previous production forecasts. Indonesia Export and Timing Challenges Freeport-McMoRan faces potential timing mismatches between production and sales as it transitions to a fully integrated producer in Indonesia. This challenge underscores the complexities of aligning production schedules with market demands. Tariff Impact on Costs The company anticipates a potential 5% increase in costs due to tariffs, necessitating ongoing monitoring and adjustments in supply chains. This situation highlights the external pressures impacting operational costs. Forward-Looking Guidance Looking ahead, Freeport-McMoRan expects continued volume growth and lower costs to drive expanded margins and cash flows into 2026 and 2027. The company reported a net unit cash production cost of $1.13 per pound, an improvement from prior guidance. Copper sales in the second half are expected to rise by nearly 10%, while gold sales are projected to remain stable. The company anticipates that the startup of the Indonesian smelter will reach design capacity by year-end, further enhancing its production capabilities. In summary, Freeport-McMoRan's earnings call reflected a strong financial performance, driven by strategic initiatives and market positioning. While the company faces challenges such as revised gold production forecasts and tariff impacts, its forward-looking guidance suggests continued growth and improved margins. Investors can expect Freeport-McMoRan to maintain its focus on operational efficiency and shareholder returns.
