The price of wood is going down, good for the construction industry and also for copper
The price of lumber has moved away from its very high level and is now back at a reasonable level, which is good for the construction industry. At the beginning of May, 1,000 feet of lumber (the common quantity designation in the USA) still cost 1,686 US dollars, but now only about 876 US dollars have to be paid. Other building materials also became cheaper. Housing starts in the US recovered by 3.9 percent to 1,615 million units, compared to 1,534 million units in July. Building permits in the U.S. rose six percent in August, led by construction of rental housing.
This trend should also benefit copper demand. Because if more buildings are being constructed, the demand for copper will also increase. The three-month copper contracts on the LME rose by 3.1 percent to US$9,255 per tonne of copper, recovering from the lows around US$8,800 per tonne of copper. A second issue is Evergrande. The troubled Chinese property giant raised more than a billion euros by selling its stake in Shengjing Bank. Hopson is also expected to acquire Evergrande's property management division for about 4.4 billion euros, providing liquidity. This also improves investor sentiment. In addition, the People's Bank of China has decided to boost the market.
As the prospects for a continuation of the rally in the copper price are thus good, a look at copper companies should not hurt.
Copper Mountain Mining - https://www.youtube.com/watch?v=artHifjxfOE - owns 75 percent of the producing Copper Mountain copper mine in British Columbia. Production is expected to increase from about 100 million pounds of copper equivalent currently to about 140 million pounds per year.
Hannan Metals - https://www.youtube.com/watch?v=tXqKksLoZb4 - also has copper in the ground. The San Martin project in Peru contains copper, silver and gold.
Current corporate information and press releases from Copper Mountain Mining (https://www.resource-capital.ch/en/companies/copper-mountain-mining-corp/) and Hannan Metals (https://www.resource-capital.ch/en/companies/hannan-metals-ltd/).
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