NEW YORK, NY -- (Marketwire) -- 01/19/12 -- Copper stocks have been on the upswing this week as the price of the red metal recently hit a new 3 month high. Copper prices have rallied as upbeat Chinese economic data fed hopes that officials in the world's top copper consumer will try to stimulate growth. China said its economy grew by 8.9 percent in the fourth quarter, which was slower than the previous quarter. Analysts, however, consider these levels "robust," the Associated Press reports. The Paragon Report examines investing opportunities in the Copper Industry and provides equity research on Freeport McMoRan Copper & Gold Inc. (NYSE: FCX) and Lundin Mining Corporation (TSX: LUN). Access to the full company reports can be found at:
Copper inventories in London Metal Exchange (LME) warehouses dropped to a 13-month low this week, and more declines are seen likely due to a pick-up in U.S. demand. Reuters reported that a 25 percent drop in LME copper prices in the fourth quarter, which touched a low of $6,635 per tonne in October, triggered restocking in China, which accounts for about 40 percent of global copper consumption.
Citigroup analyst David Wilson says that "it's fairly obvious that China has been restocking since September, attracted by lower prices, but now the question is: are we going to see more restocking or are consumers already sitting on reasonable volumes?"
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Lundin Mining Corporation operates as a diversified base metals mining company with operations in Portugal, Sweden, Spain, and Ireland. The company produced 27,488 tonnes of copper in the fourth quarter, up from the 24,908 tonnes a year ago. Zinc production rose 15 percent to 27,053 tonnes. Full-year copper production fell five percent to 75,877 tonnes, mainly due to production issues at Neves-Corvo earlier in 2011.
Freeport-McMoRan Copper & Gold Inc. engages in the exploration, mining, and production of mineral resources. The company primarily explores for copper, gold, molybdenum, silver, and cobalt.
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