CAPITAL MARKETS

Southern Copper rises

Copper major Southern Copper (US:SCCO) led the top global miners by market capitalisation this week, rising 3.7% in a mixed trading period for the majors.

Staff reporter
 Red metal resilience: Copper is hovering around a three-year price high

Red metal resilience: Copper is hovering around a three-year price high

The Mexico and Peru-focused copper producer was no doubt boosted by the red metal price remaining within about US$25 of the three-year high reached in early September of about $6,900 per tonne.

Demand from top consumer China continues and Southern Copper is aiming to increase its production capacity to 1.2 million tonnes of copper a year by 2021.

However major UK bank Barclays has predicted a "bearish overall direction" for copper in the current quarter, saying China's concentrate market might not be as tight as previously believed.

Glencore (LN:GLEN) and Coal India (IN:COAL) made the next largest gains, both up 2.7% for the week.

Coal India finalised the 10th wage agreement of coal workers last week after more than 14 months of negotiations, which included a 20% salary increase and the "special accomplishment" allowing every employee one day off a week.

Relative newcomer to the table China Molybdenum (HK:3993) was headed in the opposite direction, dropping back 2.5% after several weeks of gains.

The gold price meanwhile has lifted above $1,300/oz after the US released lower than expected CPI and retail sales data at the end of last week.

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