Category: Gold News

Copper Price Today: Apr. 03, 2024

By Published On: April 11, 20245.1 min readViews: 1330 Comments on Copper Price Today: Apr. 03, 2024

What is the price of copper per pound?

The price of copper opened today at $4.13 per pound, as of 9 a.m. ET. That’s up 1.04% from the previous day’s copper price per pound and up 6.69% since the beginning of the year.

The lowest trading price within the last day: $4.06 per pound. The highest copper spot price in the last 24 hours: $4.14 per pound.

Copper spot price

The copper spot price is the current price at which physical copper is purchased and sold for immediate delivery, settled on the spot.

Copper spot prices are typically quoted in terms of price per pound or kilogram in U.S. dollars. However, there are alternative ways to quote copper prices.

In some cases, copper may be quoted per metric ton, which is useful for large-scale industrial transactions. This is particularly common in global markets where larger quantities are standard.

Additionally, copper prices may be quoted in some financial markets in currencies besides the U.S. dollar, depending on the region and the specific market’s requirements.

Copper price chart

The chart below shows how the spot price of copper is trending over the year.

Year to date, copper is up 6.69%, as of 9 a.m ET. The 52-week high reached $4.19 per pound on Apr. 14, 2023, and the 52-week low dropped to $3.52 per pound on Oct. 23, 2023.

Spot metal prices

Copper is technically classified as a base metal due to its widespread industrial usage and greater abundance than precious metals. But it is often quoted alongside true precious metals like gold, silver, platinum and palladium.

Despite not being a precious metal in the traditional sense, copper’s importance in electrical wiring, construction and new technologies, such as electric vehicles, lends it a status often akin to that of precious metals.

The spot price of copper fluctuates in real time based on factors such as mining production, global demand, scrap availability, currency exchange rates and inventory levels.

What affects copper prices?

Like many commodities, copper prices are significantly influenced by factors that affect supply and demand in the short and long term.

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.

The fact that copper is traded primarily in U.S. dollars also plays a crucial role. Currency fluctuations can affect copper prices. When the dollar strengthens, copper becomes more expensive in other currencies, potentially reducing demand. Conversely, a weaker dollar can make copper cheaper for buyers using other currencies, fueling demand.

The ongoing clean energy transition is another significant factor affecting copper prices. Copper is a critical component in the electrification of the economy, including in electric vehicles, renewable energy systems like wind and solar, and the infrastructure needed to support these technologies. As the world moves toward cleaner energy sources, demand for copper could rise.

Finally, miner productivity and government reserves can influence copper prices. Disruptions in copper mining, whether due to strikes, accidents or environmental factors, can lead to supply constraints and higher prices. Similarly, decisions by major copper-producing countries to release or withhold copper from their national reserves can affect global prices.

Copper price history

Copper’s price history, with its notable peaks and valleys, reflects a range of economic and geopolitical events.

The early 2000s saw a steady rise in copper prices, driven largely by demand from China as it underwent rapid industrialization and urbanization. The country’s infrastructure development led to a significant increase in demand for copper.

But this period of high prices was followed by volatility and a decline in the mid-2010s, influenced by a slowdown in China’s economy and a global surplus of the metal.

The COVID-19 pandemic initially caused a drop in copper prices due to decreased demand and disrupted supply chains. But prices rebounded strongly in the second half of 2020 and into 2021.

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.

Copper futures

CME Group offers copper futures, allowing traders to speculate on or hedge against future price movements of copper. These futures contracts differ from spot copper prices, representing the current market price for immediate delivery.

Copper futures are agreements to buy or sell a specific amount of copper at a predetermined price on a specified future date. They are a type of financial derivative, meaning that their price is based on or derived from that of an underlying asset — in this case, copper.

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.

The product code for copper futures on CME Globex, an electronic trading platform, is HG. Traders and investors use this code to identify and trade these specific futures contracts.

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.

Frequently asked questions (FAQs)

The highest price copper has reached was $5.02 per pound on March 6, 2022. This record-setting price was driven by supply chain disruptions and low stockpiles following lockdowns from the COVID-19 pandemic.

Predicting future commodity prices, including copper, is inherently challenging due to the myriad factors influencing the market. However, various experts and analyses have offered insights into potential bullish trends for copper prices in the coming years.

S&P Global forecasts that copper consumption could double to 50 million metric tons by 2035, with prices in 2024 hitting $8,602 per ton thanks to demand from the Asian market. Similarly, Fitch Solutions forecasts that copper could average $8,000 per ton in 2024 due to short-term demand from China.

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