China and Improving U.S. Housing Market to Drive Copper Prices Higher

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China and Improving U.S. Housing Market to Drive Copper Prices Higher

The Provides Stock Research onSouthern Copper Corp. and Sterlite Industries (India) Ltd.

New York City, New York - Slowdown in the Chinese economy and the Eurozone debt crisis weighed on copper prices in 2012. However, the Chinese economy has shown signs of picking up pace, while concerns over the Eurozone debt crisis have eased since the start of this year. In the U.S., the housing market continues to show signs of improvement. All these factors should boost copper prices in 2013 and augur well for copper producers such as Southern Copper Corp. (NYSE: SCCO) and Sterlite Industries India Limited (NYSE: SLT).

Access our free reports onSouthern Copper Corp. and Sterlite Industries (India) Ltd.Traders can also connect to our Wall Street Trading Floor where our research desk and market pros are standing between 8:50 am to 4:15 pm ET at

Weakness in the global economy weighed heavily on copper prices in 2012. China, which has been a major consumer of copper, saw a sharp slowdown in the first half of 2012. In fact, there were concerns about a hard landing in China. However, economic activity has picked up in then country once again. Data from the world’s second largest economy since this year started has been encouraging, although the harsh measures announced by Chinese government to curb property buying in the country could have a negative impact on copper prices.

Copper prices should also benefit from ongoing recovery in the U.S. housing market. The improvement in the housing market is being driven by record low mortgage rates and pent-up demand. With the Federal Reserve expected to keep interest rates low for a considerable while, one can expect the housing market to continue to recover at a strong pace in 2013.

Although the Eurozone is in a recession, the region has shown signs of stabilizing since the beginning of the year as concerns over the region’s debt crisis have eased. Overall, the outlook for global economy has improved significantly and this should boost copper prices in 2013.

Back in January, Southern Copper Corp. reported its financial results for the fourth quarter and full year 2012. Although copper prices decreased 10% in 2012, the company’s net sales for the year fell only 2.2% to $6.669 billion. This was mainly due to a 7.1% increase in sales volume of copper. Our free research report onSouthern Copper Corp.can be downloaded upon registration at

The company also reported EBITDA of $3.772 billion for 2012. The company’s EBITDA for the fourth quarter of 2012 was $894.4 million. Net income for the full year, excluding one-time items, was $2.25 billion. For the fourth quarter, the company reported net income of $531.8 million, down 1% on a year-over-year basis.

German Larrea, Chairman of Southern Copper, noted that once again the company’s strong financial position and market preference was evidenced by the excellent terms obtained for its new debt offering.

Conversely, India-based Sterlite Industries India Limited reported its third quarter financial results back in January. The company reported a 30% increase in its attributable profit after tax and basic earnings per share for the quarter.Sterlite Industries (India) research is available today at 

Anil Agarwal, Chairman of Sterlite Industries India Limited, noted that the company continues to maintain its strong performance and leadership position and has significantly improved its efficiencies, operational performance and metal production across businesses.



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