NEW YORK (Scrap Register): Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) retains a bullish longer-term view on copper prices, said chief executive Richard C. Adkerson via Kitco News. Prices have a major impact on revenues for Freeport, the world’s largest publicly traded copper company.

 

Adkerson, speaking in an earnings webcast, points out that each 10-cent fluctuation in the price of copper impacts Freeport’s cash flow by some $370 million a year. 

 

In 2013, China went through a government change and reoriented its economy toward internal consumption while continuing to develop infrastructure, including the power grid. Demand in the country remains strong, said Adkerson. 

 

“In the U.S., demand has steadily improved, particularly in key sectors like residential construction and housing starts,” he says. There also has been improved demand from other sectors such as autos, he continued.  “As we talk to our downstream customers, we are hearing positive comments about the performance in 2014 and a degree of confidence about 2014.” 

 

He also cites the “beginnings” of a recovery in Europe and points out that exchange copper stocks have fallen. “So we’re seeing relatively positive near-term fundamentals for copper in a world that’s had economic uncertainty. Longer-term fundamentals remain particularly strong because of constraints on supply globally and the demand for copper throughout the world,” Adkerson added.