Copper ($COPPER) Commodity Forecast: Up 5.1% Today

What is Copper?

Copper is a widely used industrial metal, with its price heavily influenced by global economic conditions and demand, particularly from China, the largest consumer of copper in the world.

Why is Copper going up?

COPPER commodity is up 5.1% on Nov 7, 2024 20:42

• The bullish movement in copper prices today can be attributed to the optimism surrounding potential stimulus measures in China to boost economic growth, as well as hopes for a strong economic recovery in the country.
• The bearish movement in copper prices was driven by concerns over a strong US dollar, following the election of Donald Trump as the 47th US President, which dampened demand for dollar-denominated commodities like copper.
• The fluctuation in copper prices also reflects market volatility due to uncertainties surrounding US-China relations, especially in terms of potential tariffs and trade tensions, which could impact global economic activity and demand for industrial metals like copper.

COPPER Price Chart

COPPER Technical Analysis

COPPER News

Copper Rises on China Stimulus Hopes

Copper futures rose above $4.27 per pound on Wednesday, recovering some losses from the previous session, as optimism grew that potential US tariffs on Chinese goods could prompt Beijing to introduce more aggressive stimulus measures. Investors were also awaiting updates from the National People’s Congress standing committee, which is deliberating plans to raise local government debt to increase spending. Meanwhile, data showed that China’s trade surplus widened more than expected in October, with exports surging and imports declining. These figures added to hopes that China’s economic recovery could gain momentum, further supporting copper prices. Meanwhile, copper prices had fallen more than 5% on Wednesday as fears of higher US tariffs under a second Donald Trump presidency raised concerns over global economic growth and weaker demand for metals.

Copper Sinks on Strong Dollar

Copper futures sank to $4.25 per pound on Wednesday, the lowest in over one month, as a surge in the US dollar dampened demand for greenback-priced commodities. Donald Trump was elected the 47th US President overnight, lifting the dollar as the Fed is expected to respond to the President-elects’s expansionary fiscal policy and tariffs with higher interest rates, dampening demand for base metals among major copper importers. Still, policymakers of China’s top legislative body are set to swap off-balance-sheet debt from local governments into the central budget to finance aggressive stimulus that was previously pledged by the CCP, supporting manufacturing. The fiscal stimulus would add to the extensive monetary support measures by the PBoC in the prior month, which are likely to have supported the slight rebound in manufacturing activity unveiled in October. The NBS Manufacturing PMI pointed to a slight expansion in activity at 50.1, while the broader Caixin gauge rose to 50.3.

Copper Hits 6-week Low

Copper decreased to a 6-week low of 4.28 USD/Lbs. Over the past 4 weeks, Copper lost 5.05%, and in the last 12 months, it increased 16.62%.

Copper Declines on US Election Risks

Copper futures dropped more than 2% to below $4.35 on Wednesday, reversing a three-day rally, as early signs of a potential victory for former President Donald Trump in the US presidential election raised concerns over higher tariffs and escalating tensions between the US and China. Such developments could dampen economic activity, particularly in China, the world’s largest copper consumer, which would in turn reduce demand for the metal. Copper prices also came under pressure from a strengthening dollar, which makes dollar-denominated commodities more expensive for buyers using other currencies. Meanwhile, investors are closely monitoring the ongoing National People’s Congress in China, where authorities are expected to reveal more details on additional fiscal stimulus measures. On Tuesday, Premier Li Qiang expressed confidence that China would meet its GDP target for the year, buoyed by a range of policy support measures introduced by Beijing.

Copper is down by 2%

Copper decreased 2% to 4.3615 USD/Lbs

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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.

06.10.2024 - COPPER Commodity was down 5.1%

• Copper prices declined significantly today, reaching $4.25 per pound, marking the lowest point in more than a month.
• The drop in copper prices was mainly influenced by a strong increase in the US dollar after the recent election of Donald Trump as the 47th US President. The anticipation of higher interest rates due to his fiscal policy and tariffs led to decreased demand for commodities like copper priced in the US dollar.
• Concerns regarding potential trade conflicts between the US and China, the largest consumer of copper globally, also contributed to the downward pressure on copper prices, as elevated tariffs could harm economic growth and reduce demand for the metal.
• Despite the price decline, there are anticipations of additional economic stimulus measures from China, which might bolster manufacturing activities and offer some support to copper prices in the future.

06.10.2024 - COPPER Commodity was down 5.1%

• The bearish movement in Copper today can be attributed to:
• Concerns over US election risks, particularly the potential impact of a victory by former President Donald Trump on trade relations with China, a major consumer of copper.
• The strengthening US dollar, which makes dollar-denominated commodities like copper more expensive for buyers using other currencies, leading to reduced demand.
• Uncertainty surrounding the ongoing National People’s Congress in China and the details of additional fiscal stimulus measures, which could affect economic activity and demand for industrial metals like copper.

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.

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.

07.10.2024 - COPPER Commodity was up 5.1%

• The bullish movement in copper prices today can be attributed to the optimism surrounding potential stimulus measures in China to boost economic growth, as well as hopes for a strong economic recovery in the country.
• The bearish movement in copper prices was driven by concerns over a strong US dollar, following the election of Donald Trump as the 47th US President, which dampened demand for dollar-denominated commodities like copper.
• The fluctuation in copper prices also reflects market volatility due to uncertainties surrounding US-China relations, especially in terms of potential tariffs and trade tensions, which could impact global economic activity and demand for industrial metals like copper.

07.10.2024 - COPPER Commodity was up 5.1%

• Today's bullish movement in copper prices is linked to optimism regarding potential stimulus measures in China and expectations for the country's economic recovery.
• The market responded positively to news of China's expanding trade surplus and the potential for increased government spending to stimulate the economy, boosting copper demand.
• Conversely, the bearish movement in copper prices resulted from concerns about a strong US dollar, possible US tariffs, and escalating US-China tensions, all of which could negatively affect economic activity and copper demand.
• In summary, today's fluctuations in copper prices underscore the intricate interplay of global economic trends, trade policies, and stimulus measures that collectively influence the demand and pricing of this essential industrial metal.

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.