Copper ($COPPER) Commodity Forecast: Up 2.4% Today

What is Copper?

Copper is a widely used industrial metal known for its conductivity and corrosion resistance. It is heavily influenced by global economic trends and demand from major consumers like China.

Why is Copper going up?

COPPER commodity is up 2.4% on Oct 29, 2024 9:16

• The bullish movement in copper today can be attributed to the optimism surrounding Chinese demand following stimulus measures and expectations of more fiscal stimulus announcements at the National People’s Congress meeting.
• The slight pullback in the dollar also supported copper prices, as investors assessed Federal Reserve monetary policy and the upcoming US presidential election.
• Supply concerns, particularly in China and the US, have also contributed to the bullish sentiment as tight copper concentrate markets and domestic production constraints led to increased imports in the US.
• Overall, the bullish movement in copper today reflects a combination of demand optimism, supply worries, and macroeconomic factors influencing the metal's price.

COPPER Price Chart

COPPER Technical Analysis

COPPER News

Copper Remains in Sideways Range

Copper futures eased to around $4.31 per pound on Tuesday, remaining in a sideways trading range since mid-October as investors cautiously awaited policy announcements from a meeting of top leadership in China next week. The National People’s Congress is scheduled to meet on Nov. 4-8, with markets anticipating announcements on debt and other fiscal measures. China's October PMI reports due later this week could shed light on the impact of Beijing’s recent stimulus measures as demand uncertainties in the top metals consumer continued to weigh on commodity prices. A strong US dollar and Treasury yields also pressured commodities as signs of resilience in the US economy tempered expectations for aggressive Federal Reserve interest rate cuts. The possibility of a Trump election victory has also pushed the dollar and yields higher as his policies on tariffs, taxes and government spending are seen as inflationary.

Copper Eases on Stronger Dollar, Treasury Yields

Copper futures slipped to around $4.31 per pound on Monday after rising for two straight sessions, weighed down by a stronger dollar and Treasury yields as signs of resilience in the US economy tempered expectations for aggressive Federal Reserve interest rate cuts. The possibility of a Trump election victory has also pushed the dollar and yields higher as his policies on tariffs, taxes and government spending are seen as inflationary. Meanwhile, investors look ahead to the meeting of the National People’s Congress scheduled on Nov. 4-8 for potential announcements on debt and other fiscal measures. Data released over the weekend showed that industrial profits in China declined at the fastest pace since the pandemic in the first nine months of the year amid persistently weak demand, weighing on the economic outlook in the world’s top metals consumer.

Copper Stabilizes on Supply Concerns

Copper futures stabilized around $4.31 per pound on Friday, remaining in a sideways trading range since mid-October as a tight copper concentrate market in China raised supply worries. Strong demand and domestic production constraints in the US also led to a surge in copper imports in the world’s largest economy this year. Moreover, copper prices benefited from a slight pullback in the dollar as investors continued to assess the outlook for Federal Reserve monetary policy and braced for the upcoming US presidential election. Meanwhile, investors awaited more policy announcements from China at the upcoming meeting of the National People’s Congress Standing Committee. Markets expect a stimulus package of up to 10 trillion yuan as the country struggles to achieve full-year growth targets.

Copper Steadies as More China Stimulus Eyed

Copper futures steadied around $4.33 per pound on Thursday on hopes that top consumer China will announce more fiscal stimulus measures in the upcoming meeting of the National People’s Congress Standing Committee. Markets expect a stimulus package of up to 10 trillion yuan as China grapples to achieve full-year growth targets. Beijing recently implemented various monetary easing measures including a reduction of key lending rates amid efforts to revive economic growth. Copper prices also benefited from a slight pullback in the dollar as investors continued to assess the outlook for Federal Reserve monetary policy and braced for the upcoming US presidential election. Elsewhere, expectations of strong copper demand driven by the shift toward cleaner energy raised concerns about a shortfall as miners struggled to increase supply.

Copper Slips on Dollar Strength

Copper futures slipped below $4.35 per pound on Wednesday, giving back gains from the previous session, weighed down by a rallying dollar as traders dialed back bets on aggressive rate cuts from the US Federal Reserve. A stronger dollar makes commodities denominated in the currency more expensive for buyers holding other currencies, hurting demand. Still, copper prices continued to be supported by optimism about Chinese demand following a series of stimulus measures from Beijing. Earlier this week, the People’s Bank of China lowered its one- and five-year loan prime rates by 25 basis points as part of a broader stimulus package to revive economic growth. On Friday, the PBOC also moved to support China’s equity market and announced that it could lower banks’ reserve requirements again before the year ends. Elsewhere, expectations of strong copper demand driven by the shift toward cleaner energy raised concerns about a shortfall as miners struggled to increase supply.

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Copper Price History

30.08.2024 - COPPER Commodity was down 5.0%

• Copper experienced a bearish movement today despite recent bullish trends.
• The bearish movement could be attributed to profit-taking by investors after a series of strong gains driven by China's stimulus measures.
• The market may have reacted to concerns about the sustainability of the recent price surge, leading to a temporary pullback.
• Traders might be cautious amid uncertainties surrounding the global economic outlook and potential shifts in central bank policies.

22.04.2024 - COPPER Commodity was down 5.9%

• The bearish movement in copper today can be attributed to the easing from its record high of $5.15 per pound.
• Poor demand in the near term, particularly from China, the world's top copper consumer, despite tight ore supply and low treatment volumes in the refining industry, led to an increase in inventories and a sharp discount in prices.
• Speculative bets for copper remained high, driven by its role in electrification and infrastructure, but concerns about looming shortages and the surplus expected in the market for 2024 and 2025 weighed on prices.
• The high costs of committing to new projects and the focus on M&A activity by giant miners instead of new developments also contributed to the bearish movement in copper prices today.

15.04.2024 - COPPER Commodity was up 5.0%

• Copper reached an all-time high of $5.03 USD/Lbs, marking a substantial increase in price.
• The surge in Copper prices can be attributed to strong demand and tight supply dynamics, with concerns of shortages looming in the market.
• Increased imports of copper ore by China despite soaring prices underpin the robust demand from manufacturers, further fueling the bullish trend in Copper prices.
• The high costs associated with developing new copper mines have led major mining companies to focus on M&A activities, signaling a shift in the industry's strategic direction towards consolidation rather than new projects.

14.04.2024 - COPPER Commodity was up 5.2%

• Copper futures soared to over $4.8 per pound, the highest since February 2022, driven by strong demand and tight supply concerns.
• Increased imports of copper ore by China despite rising prices supported manufacturers' demand, while smelters in China faced margin pressures due to low material availability.
• Giant miners turned to M&A activities instead of new projects due to high costs, exemplified by BHP's recent attempt to acquire Anglo American.
• The bullish movement in copper was further fueled by the metal's essential role in electrification, AI, and automation infrastructure, underpinning long-term demand forecasts.

22.04.2024 - COPPER Commodity was down 5.0%

• Today's bearish movement in copper is due to concerns over low near-term demand in China, the largest consumer of copper globally, despite tight ore supply and low treatment volumes in the refining industry.
• Speculative bets for copper, fueled by its importance in electrification and infrastructure projects, have maintained high prices year-to-date, but a lack of immediate physical demand is putting pressure on prices.
• The high costs associated with initiating new mining projects have prompted major miners to prioritize M&A activities over new developments, affecting the future supply forecast for copper.
• The market's current shift may also indicate a correction from recent record highs, as investors reconsider the balance between speculative demand and actual consumption in the copper market.

15.04.2024 - COPPER Commodity was up 5.1%

• Copper prices surged to over a 2-year high due to strong demand and tight supply concerns, with futures exceeding $4.71 per pound.
• Increased copper ore imports from China, despite rising prices, highlight robust demand from manufacturers. Low availability of material is impeding margins for smelters in China, potentially leading to a 10% output cut this year.
• The market responded positively to the optimistic long-term demand outlook for copper, fueled by its crucial role in global electrification, artificial intelligence, and automation infrastructure.
• Speculation about quantitative easing in China, fueled by concerns about the country's property crisis, further boosted copper prices. Markets are anticipating rate cuts and potential supply deficits against optimistic demand projections.

08.02.2024 - COPPER Commodity was down 0.8%

• Copper futures dipped to $3.84 per pound due to the lack of significant stimulus from China, disappointing investors who were hoping for more extensive measures to boost demand and stabilize growth.
• The announcement of a 5% growth target for 2024 by China at a recent parliament meeting raised concerns about the country's economic outlook, especially as the manufacturing sector witnessed its fifth consecutive month of contraction in February.
• The increase in copper inventories in SHFE warehouses to 214,487 tons, the highest level in nearly a year, further signaled weak demand for the metal, contributing to the bearish movement in the market.
• Investors are now looking towards the upcoming National People's Congress (NPC) meeting from March 5-11, considering the possibility of additional stimulus measures that could potentially impact copper prices in the near future.

29.09.2024 - COPPER Commodity was up 2.4%

• The bullish movement in copper today can be attributed to the optimism surrounding Chinese demand following stimulus measures and expectations of more fiscal stimulus announcements at the National People’s Congress meeting.
• The slight pullback in the dollar also supported copper prices, as investors assessed Federal Reserve monetary policy and the upcoming US presidential election.
• Supply concerns, particularly in China and the US, have also contributed to the bullish sentiment as tight copper concentrate markets and domestic production constraints led to increased imports in the US.
• Overall, the bullish movement in copper today reflects a combination of demand optimism, supply worries, and macroeconomic factors influencing the metal's price.

05.06.2024 - COPPER Commodity was down 2.2%

• Copper reached a 4-week peak earlier this week supported by optimism around potential US Federal Reserve rate cuts and fiscal stimuli in China, but it reversed its course to follow a bearish trajectory today.
• The decline is likely linked to uncertain factors on the demand side, including contradictory information on Chinese manufacturing activities and forecasts of weakening demand in China for the latter part of the year.
• Moreover, the consistent growth in copper supplies in warehouses monitored by LME and the Shanghai Futures Exchange may have contributed to price declines, hinting at potential concerns of oversupply in the market.
• Despite recent positive movements, today's downturn underscores the persistent obstacles and unknowns in the global economic growth and trade disputes landscape, influencing the demand and supply dynamics in the copper market.