Mining shares plunge as copper declines

The shares of seven of the main mining companies in Mexico and the world lost 14,440 million dollars of joint capitalization in their respective stock markets, as a result of the drop in the price of copper in the international market.

Analysts explained that the drop in copper is mainly due to the closure of cities in China due to new outbreaks of Covid-19, as well as the expectation of a global slowdown.

“China is the main buyer of copper and demands close to 50% of all raw materials in the world,” said Ana Azuara, Raw Materials analyst at Banco Base.

“The fact that there are signs of a slowdown in its economy causes prices to fall, as demand drops,” he added.

The mining company that fell the most on the Mexican Stock Exchange was Grupo México (-3.25%) at 94,130 pesos per share, a loss in capitalization value of 1,598 million dollars. Industrias Peñoles lost 0.82 percent.

Five of the most relevant copper miners in the world also fell. The Canadian HudBay Minerals (-7.25%), the ADR (American Depositary Receipts) of the Australian BHP (-5.63%) and those of the British Río Tinto (-4.55%). The Canadians First Quantum Minerals (-5.39%) and Teck Resources (-3.73%) and Southern Cooper (4-.93%).

Three-month copper on the London Metal Exchange (LME) fell 1.05% to $9,310 a ton on Monday.

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