FCX touched $38 on Jan 2 2014. We have now lost about $7.50 in January. The 2 big problems are centered around future demand, primarily concentrated on slow Chinese copper consumption and the Indonesian export tax on unrefined copper. GOI wants to impose a tax of 20% escalating up to 100%. ,Indonesia makes a lot more if the minerals are refined inside their country.
This is a Presidential election year in Indonesia. Many copper/others are being laid off
It is not economical to build a new smelter
I have been very critical of FCX senior mgmt for some of their decisions. A reasonable negotiated agreement to this problem needs to be done. If we get a settlement, we should spike a couple of bucks
Until then, we are going to continue to see more downward pressure