Copper ($COPPER) Commodity Forecast: Up 1.8% Today

What is Copper?

Copper is a widely used industrial metal, with its price being influenced by various factors such as global economic conditions, supply and demand dynamics, and currency fluctuations.

Why is Copper going up?

COPPER commodity is up 1.8% on Jan 6, 2025 11:40

• Despite facing pressure from a strong US dollar, Copper experienced a bullish movement today, likely driven by positive economic data from China's services sector, signaling resilient consumption.
• The market movement could also be attributed to investors' optimism following Beijing's pledge to implement more proactive macroeconomic policies and lower interest rates to stimulate economic growth, despite concerns over the lack of concrete fiscal support measures.
• The recent drop in Copper prices to a 20-week low and a 3-month low could be indicative of the market's sensitivity to manufacturing demand outlook and ongoing economic uncertainties, highlighting the volatility and challenges faced by the commodity.

COPPER Price Chart

COPPER Technical Analysis

COPPER News

Copper Muted as China Outlook Mulled

Copper futures were largely unchanged around $4.02 per pound on Monday as investors weighed the economic outlook for China, the top consumer of the metal. Beijing recently pledged to implement "more proactive" macroeconomic policies and lower interest rates this year in an effort to stimulate economic growth. Additionally, data showed that China’s services sector growth accelerated to a seven-month high in December, signaling resilient consumption. However, copper and other commodities continued to face pressure from a strong US dollar, driven by expectations of fewer Federal Reserve rate cuts this year. A stronger dollar makes commodities priced in US dollars more expensive for holders of other currencies.

Copper Hits 20-week Low

Copper decreased to a 20-week low of 3.98 USD/Lbs. Over the past 4 weeks, Copper lost 3.92%, and in the last 12 months, it increased 3.54%.

Copper Drops to 3-Month Low

Copper futures were below $4.05 per tonne, hovering close to their lowest level since early September amid pessimism over future manufacturing demand. Contractionary manufacturing PMIs from China indicated that factories at the world’s top copper consumer struggled with the country's broad economic slowdown. Also, the lack of details on pledges of fiscal support raised concerns that Beijing prioritized optics instead of action with its stimulus signals, and policy pivots will not be enough to aid manufacturers. Stateside, input demand for manufacturers was also poor, with the ISM Manufacturing PMI pointing to one sole month of expansion in activity over the last two years. Copper is due to close 2024 around 5% higher, but dropped nearly 30% from the record-high of $5.2 touched in May, as the oversupply of metal to Chinese refineries dropped treatment charges to nearly zero and offset the rally driven by speculative copper demand in data centers and electrification technologies.

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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.

06.00.2025 - COPPER Commodity was up 1.8%

• Despite facing pressure from a strong US dollar, Copper experienced a bullish movement today, likely driven by positive economic data from China's services sector, signaling resilient consumption.
• The market movement could also be attributed to investors' optimism following Beijing's pledge to implement more proactive macroeconomic policies and lower interest rates to stimulate economic growth, despite concerns over the lack of concrete fiscal support measures.
• The recent drop in Copper prices to a 20-week low and a 3-month low could be indicative of the market's sensitivity to manufacturing demand outlook and ongoing economic uncertainties, highlighting the volatility and challenges faced by the commodity.

03.11.2024 - COPPER Commodity was up 2.7%

• The bullish movement in copper prices today was driven by several factors:
• Expectations of additional stimulus measures in China to support economic growth amid uncertainties, including potential tariff threats.
• A weaker US dollar after significant events, making copper more appealing to buyers using other currencies.
• Improved global risk sentiment seen in gains in US stocks and reductions in the dollar and Treasury yields, easing concerns over tariff threats.
• Anticipated increased demand from China's appliance and automotive sectors, despite weak overseas demand and production challenges at the Escondida copper mine in Chile.

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.

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.

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.

09.11.2024 - COPPER Commodity was up 1.7%

• Copper prices surged to a 4-week high as investors awaited key policy announcements from China, the world's largest consumer of copper, leading to expectations of additional economic support measures.
• Speculation around potential stimulus measures from China, amid uncertainties including the return of US President-elect Donald Trump, contributed to the bullish movement in Copper prices.
• The positive outlook for Copper was further supported by recent data showing Chinese manufacturing activity expanding for the second consecutive month in November, reinforcing the demand for the industrial metal.
• The market sentiment towards Copper remained optimistic as traders anticipated potential stimulus measures from Beijing, driving Copper prices higher and maintaining a bullish trend.

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.