Copper Prices Today Live Chart and Price Forecast

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The largest copper deposits can be found in Chile, Australia, China, Democratic Republic of Congo, Peru, Mexico and the United States. Together, these seven countries sit on roughly 65% of the world’s copper deposits. To date, roughly 700 million metric tons of copper have been mined in the world. An estimated 2.1 billion tons of identified deposits remain in the ground, while undiscovered deposits are estimated at 3.5 billion tons. Copper bullion might be harder to purchase than the likes of gold, silver, platinum, or palladium since it’s not classified as a ‘precious metal’.

  1. Finally, miner productivity and government reserves can influence copper prices.
  2. Copper was the first metal to be worked with by humans and is among the most widely used metals today.
  3. DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material.
  4. Copper’s widespread usage began during the Copper Age, from 3500 to 2300 BCE.

Cheaper metals such as aluminum are now a substitute for copper in power cables, electrical equipment, and refrigeration equipment. The economic principle of substitution represents a risk of investing in any commodity, and copper is no exception. As prices climb, buyers will seek cheaper substitutions, if available. Finally, natural disasters like earthquakes and landslides can slow down mining output.

Copper Prices Per KG/Pound [+ Historic Data]

No matter where someone is in the world, whether in New York, China, or London, silver tends to hold its value across markets. Copper’s malleability makes it easy to work with, and it is readily available worldwide despite the growing potential of a copper shortage. Copper has been a valuable commodity for thousands of years, and its uses have only increased as more industries appear. Copper is among the top three most commonly consumed metals in the world, following iron and aluminum.

News & Analysis

The automotive industry forms one of the most substantial copper demands in the world, in part due to modern electric vehicles that use copper wiring. Smartphones and electric household appliances and their respective production also require copper parts. Similarly, Fitch Solutions forecasts that copper could average $8,000 per ton in 2024 due to short-term demand from China. One troy ounce is rounded to 31.1 grams — this unit is typically used on exchanges and by bullion dealers.

Copper futures contracts involve the delivery of physical copper of specific quantities (outlined in the contract) at a future date. If nothing else, copper prices are not expected to take a dramatic downward turn, which is good news for investors. Additionally, the CME Group Volatility Index provides insights into the 30-day implied volatility of the copper market. The index reflects expectations of price fluctuations in the copper market based on trading options for copper futures. The COVID-19 pandemic initially caused a drop in copper prices due to decreased demand and disrupted supply chains.

Global Copper Consumption

The most abundant supply of copper comes from the U.S. and Chile, but even in those areas, this metal content isn’t infinite. Copper is also used extensively in the manufacture of electronics and electrical components. In homes and buildings, copper has decorative as well as practical uses in pipes and wiring. The product code for copper futures on CME Globex, an electronic trading platform, is HG.

The discovery that copper could be alloyed with tin to form bronze gave rise to the Bronze Age. The short answer is yes, physical copper bullion can play a relatively small but vital role within a diversified investment portfolio. Since it is a hard asset, copper is likely to go up in the future as the dollar depreciates. In the U.S., post-consumer scrap contributed 160,000 tons of supply in 2019, or about 9% of consumption.

Copper price determinants

Nickel, lead, and iron also compete with copper as substitutes in some industries. China is one of the largest consumers of copper, and its economic activities heavily influence global copper prices. The country’s rapid industrialization and urbanization have increased the demand for copper, used extensively in construction and manufacturing. Consequently, any fluctuations in China’s economic growth or industrial policies can substantially impact global copper demand. Copper prices are determined by the demand for copper, primarily commercial. Such demand is driven by the construction and technology industries.

We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Information presented by DailyFX Limited should be construed as market commentary, merely observing economical, political and market conditions. This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice. DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. In recent years, new technology has caused demand for copper to go up.

As the world moves toward cleaner energy sources, demand for copper could rise. You can see historical copper prices, real-time price and the 24 hour forex metal’s year-to-date performance at the top of the page. The price of copper is largely influenced by the health of the global economy.

If you’re looking to invest in something that will retain value far into the future, copper is worth considering. This year has seen copper prices dipping into a trading range, which has yet to resolve to the upside. According to Comex and a number of industry leaders, copper will need to break above 2018’s high, when copper rose to well over $3, to establish a major bull trend. Copper prices have been in a bearish trend recently, and they’re not necessarily expected to rise anytime soon.

In fact, most forecasts for copper prices over the next few years continue to be bearish at worst and neutral at best. The standard contract size for CME copper futures is 25,000 pounds, quoted in U.S. dollars per pound. This large contract size makes them a significant tool for large-scale traders and industrial users of copper. More recently, the transition to green technology has become a key driver of future copper demand. Copper is essential in electric vehicles, renewable energy systems and other technologies in the shift away from fossil fuels.

This is due to its widespread applications in all sectors of the economy, such as power generation and transmission, construction, factory equipment and electronics. Sometimes referred to as Doctor Copper, the base metal is seen as a reliable leading indicator. A rising market price suggests strong economic health, while a decline suggests the opposite. The price of copper may depend greatly on the ability of these countries, as well as other emerging economies like Brazil.