 had a volatile end to the week, dropping sharply in early trade on Friday before levelling out.){kind=link}
Shares in copper mining company Antofagasta (LON:ANTO) had a volatile end to the week, dropping sharply in early trade on Friday before levelling out.
The price of copper steadied on Thursday after several days of weakness, after sluggish demand from consumer industries at the domestic spot market put downward pressure on prices. Expectations that Chinese demand would fall after Moody’s downgraded the country’s credit rating for the first time in 30 years hit markets, with China being one of the largest consumers of copper.
Shares in Antofagasta are currently trading down 0.39 percent at 771.50 (0927GMT).
Antofagasta had its price target increased by J P Morgan Chase & Co from GBX 680 ($8.66) to GBX 740 ($9.43) in a report released at the beginning of June. They currently have an underweight rating on the mining company’s stock.
Back in March the company released stronger than expected results for 2016, with earnings before interest, tax, depreciation and amortisation jumping 78.7 percent to $1.63 billion.
Antofagasta confirmed alongside the results that it expected copper prices to rise in the coming months, saying:
“In the medium term the Group expects to see a steady shift from a market in balance to a slight deficit, leading to a further improvement in prices.
“There are wild cards of course, but these are more likely to be positive for the copper price than negative,” it finished.
Since then however copper prices have proved volatile, hit by adverse weather conditions and subdued demand.