C6C to OZL: How ASX copper stocks are reacting to red metal’s price drop

July 15, 2022 02:53 PM AEST | By Ashish

C6C to OZL: How ASX copper stocks are reacting to red metal’s price drop — Image source: © Emiloprisa|Megapixl.com

Highlights

Copper prices have been under pressure over the recent few weeks.

The red metal’s prices plunged to a 20-month low on Wednesday.

Australia is home to nearly 13% of the world’s total copper resources.

The prices of industrial metals have traded on a weak note over the past few weeks. Markets anticipate rapid rate hikes to curb rising inflation may slow down the global economic growth and negatively impact demand for metals. Additionally, muted demand for copper from top consumer China on account of renewed COVID-19 restrictions has also weighed on the red metal’s prices. Copper prices hit a 20-month low on Wednesday, slipping by a third from their March peak.

By 12:23 PM (AEST), CME Copper Futures for July contract were trading at USD 3.2/IB, down 0.115%. For context, the ASX 200 Materials Index was trading down 3.06% at 14,346.70. On the other hand, the ASX 200 Index (ASX:XJO) is down 0.82% during afternoon trade.

The red metal, which is the third most consumer industrial metal globally after iron and aluminium, is known to be a reliable historical indicator of economic health. Australia is home to nearly 13% of the world’s total copper resources. Meanwhile, traders are likely to expect ASX-listed copper shares to soon stage a big comeback in the coming months.

Here we look at how a few ASX-listed copper stocks are performing today.

Copper Mountain Mining Corporation (ASX:C6C)

Copper Mountain is engaged in the exploration of copper, silver, and gold reserves. By 12:23 PM (AEST), shares of Copper Mountain were trading at AU$1.61, down 8%. The share price has fallen nearly 57% on a year-to-date (YTD) basis and over 58% in the past year.

Culpeo Minerals (ASX:CPO)

Culpeo Minerals explores and develops copper. Shares of Culpeo Minerals were trading flat at AU$0.21. The share price has risen over 31% on a YTD basis and fallen nearly 9% in the past year.

Sandfire Resources (ASX:SFR)

Sandfire Resources is a globally diversified sustainable mining company. Shares of Sandfire Resources were trading at AU$3.66, down 4.07%. The share price has fallen over 46% on a YTD basis and over 42% in the past year.

Oz Minerals (ASX:OZL)

Oz Minerals is a mining firm with a focus on copper. Shares of Oz Minerals were trading at AU$16.14, down 3.90%. The share price has fallen over 44% on a YTD basis and over 27% in the past year.

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