Southern Copper Corp (SCCO) stock is experiencing a significant pre-market plunge of 6.32% as copper prices continue to decline. The drop comes as the red metal heads towards its worst monthly performance since November, putting pressure on copper mining stocks across the board.
The sharp decline in copper prices is primarily attributed to weak economic data from China, the world's largest metals consumer. Factory activity in China contracted at the fastest pace in 16 months in April, raising concerns about demand for industrial metals. Additionally, the lack of progress in de-escalating the U.S.-China trade conflict has further dampened market sentiment, contributing to the downward pressure on copper prices.
Southern Copper Corp is not alone in facing this market pressure. Other major players in the copper mining industry are also seeing significant pre-market declines. U.S. shares of global mining giants Rio Tinto and BHP are down 2.5% and 2.3% respectively, while Freeport-McMoRan has dropped 4.3%. The widespread impact on copper miners underscores the challenges facing the sector as global economic uncertainties persist.
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