ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Artificial Intelligence
      • Beyond Basic Beta
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Direct Indexing
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Investing
      • ETF Education
      • ETF Strategist
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Institutional Income Strategies
      • Leveraged & Inverse
      • Managed Futures
      • Market Insights
      • Modern Alpha
      • Multifactor
      • Responsible Investing
      • Retirement Income
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Commodities
        • Gold/Silver/Critical Minerals
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Copper Market in a Deficit, But ETNs Still Need Help
News
Share

Copper Market in a Deficit, But ETNs Still Need Help

Sep 27, 2019
2019-09-27

The global copper market is experiencing a supply deficit, which, in theory, should boost prices of the red industrial metal. However, the reality is that the iPath Series B Bloomberg Copper Subindex Total Return ETN (JJC A) may need more help than just supply shortfalls.

Some analysts are growing concerned that global troubles could drag down the industrial metal as well. Along with the trade concerns, copper prices were weakening on softening global economic data. The base metal is a significant component in many industries, including construction, and is widely seen as a barometer for global economic health.

“Global mined copper output dropped in the first six months of the year by 1.4% to nearly 9.92 million tonnes mainly due to weather disruptions in world’s leader Chile and the transition of two mines in Indonesia to different ore zones,” reports Cecilia Jasmine for Mining.com. “Chile’s production dropped 2.5% as heavy rains in the country’s north and lower grades weigh on the country’s outcome, the latest report by the International Copper Study Group (ICSG) shows

Due to copper’s widespread use, particularly when it comes to home building and commercial construction, it’s a good measuring stick of how well the economy is doing. Good news: sentiment toward the red metal is improving.

Why It’s Important

“Indonesia’s copper concentrate output fell a staggering 55% owing to the transition of Grasberg into block caving and Batu Hijau mine to Phase 7,” according to Mining.com. “It means that global refined copper market ended the first half of 2019 with a supply deficit of about 220,000 tonnes.”

What could provide some support to JJC into year-end is the widespread nature copper shortfalls. Data indicate mining activity of the red metal is slumping throughout the world, excluding North America.

Related: Catch This Compelling Copper Conundrum

“On a regional basis, ICSG data shows that mine production declined 6% in Asia, 1% in Latin America and 3% in Europe, but increased around 2% in North America and 7% in Oceania, and remained essentially flat in Africa,” according to Mining.com.

ETF investors sensing an opportunity in copper can also gain exposure to the metals and mining space through miner-related ETFs, such as the SPDR Metals & Mining ETF (XME A-), which is designed to track the broad metals and mining segment, and the Global X Copper Miners ETF (COPX B+), which takes a more focused approach to copper miners.

This article originally appeared on ETFTrends.com


Content continues below advertisement

» Popular Pages

  • Tickers
  • Articles

Sep 26

Top Performing Leveraged/Inverse ETFs: 09/24/2023

Sep 26

An Electrifying Forecast for This EV ETF

Sep 26

Helping Self-Employed and Gig-Worker Clients Save for Retirement

Sep 26

YieldMax Launches Option Income Strategy ETF For PayPal

Sep 26

ANGL Sensible Avenue for Junk Bonds Exposure

Sep 26

Bond Yields Keep Rising as Economy Remains Resilient

Sep 26

Another Reason ESG Credibility Matters

Sep 26

China's Self-Reliance Can Benefit These 2 ETFs

Sep 26

Cloud Computing and AI Will Be Persisting Themes in Tech

Sep 26

Sector Allocation Matters for Portfolio Dividend Yield

QQQ

Invesco QQQ Trust Series I

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

SCHD

Schwab US Dividend Equity ETF...

SMH

VanEck Semiconductor ETF

XLK

Technology Select Sector SPDR...

VTI

Vanguard Total Stock Market...

JEPI

JPMorgan Equity Premium...

VIG

Vanguard Dividend...


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X