China copper smelters bracing for shortage of vital scrap metal
Around 30% of China’s refined copper production used scrap metal as a feedstock in 2023.
Grupo Mexico SAB is charging ahead into the worst metals market in 15 years, taking advantage of the slump to ramp up growth while competitors cut back and hunker down.
Mexico’s biggest copper producer is leveraging its relatively low debt and strong profit margins to invest more than $4.6 billion expanding some of its mines, making it one of the favorite picks for analysts’ covering the sector this year. Almost two-thirds of 21 analysts surveyed by Bloomberg recommend buying Grupo Mexico’s shares, according to a Bloomberg survey.
That’s a leap of faith for investors who’ve watched copper prices post three straight annual losses, with a fourth loss forecast for 2016 as global production continues to outpace consumption.
