Freeport-McMoRan Can't Overcome China Weakness
While signs existed last week that Freeport-McMoRan Copper & Gold (NYSE: FCX ) was close to a resolution in Indonesia, the stock is going to have a much harder time overcoming the plunging copper prices due to China. As with most commodities, China is the engine that drives demand and ultimately pricing of copper. In the last few years, the Asian power has grown to account for roughly 40% of copper demand worldwide.
Freeport-McMoRan is a leading global mining company with interests in copper, gold, and oil. The miner has a mix of mines throughout North America, South America, the Democratic Republic of Congo, and Indonesia. The mix of commodities and geographic locations helps it overcome political issues in any particular country, but the one thing the company won't overcome is plunging copper prices due to weak demand in China.
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