There's a hilarious play called A Tuna Christmas in which two actors together play more than a couple of dozen parts. But the speed of the costume changes the two accomplish pales beside the recent transitions in the mining and metal markets.
Indeed, it seems like just the other day that I was telling my Foolish friends about the world's big iron ore providers, Vale
However, it isn't just iron ore that's been hit by plummeting prices. Add copper, molybdenum, zinc, tin, nickel, and palladium to the list of metals that have retreated from their recent high-demand status. In fact, it wasn't long ago that thieves were making off with a host of copper-bearing entities, from telephone lines to air conditioners, just for the resale value of the red metal inside. No longer.
Since the biggest demand declines have occurred in China, my spouse ties it all to the Olympics, maintaining that the years-long buildup to the gala event led to a steady hike in the demand for all manner of resources. I think she's being a little simplistic, but the fact remains that China's economic growth has slowed by a quarter since last year, as the rest of the world has reduced its purchases of Chinese goods and the country has cut back on its own infrastructure spending.
The effects on the big metals and mining companies have been disastrous. Copper and molybdenum producer Freeport-McMoRan
Have these companies become buying opportunities? My best analysis says not yet. Sure, they're cheap compared even to their early 2008 levels. But unless you can assure me that demand from China and the rest of the consuming world is returning, I'd urge you to give most of this sector a wide berth for now.
Freeport-McMoRan and BHP Billiton are the only Motley Fool CAPS five-star companies mentioned above. Have you rated the members of the group?
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