Copper miners to see profit grow further in 2018

After struggling with falling copper prices since 2011, producers of the red metal are finally recording profits thanks to this year's upswing. And, according to analysts at S&P Global Market Intelligence, the miners’ profit margins are set to grow further in 2018. As of October 30, prices for the industrial had increased 24% since the start of the year and by 58% since the lowest price seen in recent history — $1.96 a pound in January 2016. Some, such as S&P senior research analyst, Adam Webb, attribute the price recovery to lesser pressure to cut costs at copper operations, despite some upward pressure on mining costs. “Total cash costs in the copper-mining sector are expected to be approximately 6% higher in 2017 compared with 2016. However, the higher metal prices has provided respite to many copper miners, which had been forced to cut costs and reduce capital expenditures in the wake of falling copper prices since the highs seen in 2011,” Webb said in a report Friday.