bnamericas (Business insight in Latin America)
Peru copper exports fall 25% in January on price, volume, By Alex Emery - Monday, March 10, 2014
Peru, the world's third largest copper producer, saw export revenue from the metal fall 25.3% to US$584mn in January on lower prices and volumes shipped, central bank figures show.
Total metals exports fell 30.9% to $1.31bn in January, helping to widen a US$783mn trade deficit from a US$328mn deficit a year earlier, while total exports dropped 17.6% to US$2.83bn.
Peru shipped 87,900t of copper at $3.01/lb in the month, compared with 100,400t at US$3.53/lb a year earlier, the bank said in a statement posted on its website.
Gold shipments totaling 253,200oz earned US$315mn, a 54% decline as the price slid to US$1,244.80/oz from US$1,672.70/oz in January 2013, the bank said. Peru is the world's sixth largest gold producer.
Iron ore exports fell 13.5% to US$73mn, while those of tin dropped 13.5% to US$40mn as both saw lower shipments and prices, according to the central bank.
Zinc slid 2.7% to US$131mn, while molybdenum fell 16.6% to US$24mn, both due to price declines.
Silver exports jumped 129% to US$34mn as shipments tripled, offsetting a 35% drop in price, the bank said. Lead export revenue rose 3.8% to US$111mn on higher shipments and prices.
Copper has declined over 4% today, falling through the "support" level that was tested a few times. SCCO is following copper down. Copper is probably declining on increased production and perhaps lower than expected demand. Don't know for sure.
Recent market action in SCCO had been short term bullish trying to overcome general copper market bearishness. When the bearish trend on copper is revisited, it's particularly hard on stocks that had been trying to form a bottom and move up, like SCCO.