On Thursday, Freeport-McMoRan (NYSE:FCX) Inc, the US-based Copper miner, reported a decline in Q3 profit as recession fears and COVID-19 lockdowns in China hit the red metal’s prices.

LME (London Metal Exchange) copper has plunged 30 per cent since reaching a record peak in March, largely holding in a range between USD 7,200 and USD 8,000 since August, pressured by COVID-19 flare-ups in China, the world’s biggest metal consumer.

Freeport-McMoRan said the average realised price for copper fell 16.7 per cent to USD 3.50 per pound at the end of Q3, compared to last year. Investors are betting on copper’s critical role in reducing emissions as the world transitions to a lower carbon economy. However, miners are battling rising costs and supply-chain constraints.

Freeport said average unit net cash costs for the North American copper mines surged 40.6 per cent to USD 2.56 per pound in the quarter, primarily due to higher costs for energy, labour, maintenance and supplies and lower molybdenum by-product credits.

The company said net income attributable to common stock declined to USD 404 million, or 28 cents per share, in the quarter that ended September 30, from USD 1.4 billion, or 94 cents per share, last year. However, the miner’s adjusted profit was 26 cents per share.