The mining industry is set for a busy week with macro set-piece events and corporate earnings expected to drive the sector after a dip in equities and metals prices last week, largely due to weak demand from China.
RBC Capital, the Canadian investment bank, says the market is eagerly awaiting the US CPI print later this month, which could impact the country's monetary policy following a robust labour market report. In terms of earnings reports,
First Quantum Minerals (TSX:FQM) Ltd leads the way after the market closes on Tuesday, followed by Capstone Copper Corp before the market opens on Wednesday, and Warrior Met Coal Inc and Nexa Resources SA after the market closes on the same day.
The industry is also watching First Quantum closely, as concentrate shipments are currently blocked, and the Cobre Panama copper mine may be shut down if a resolution cannot be reached with the Panamanian government over exports.
Despite this uncertainty, negotiations have "advanced," according to Panama's Minister of Commerce.
The bank notes that base metals and bulk commodities faced downward pressure, but metallurgical coal was up by 5.5% to $380/t.