Prev Arrow Commodities

Copper ($COPPER) Commodity Forecast: Down 5.9% Today

Morpher AI identified a bearish signal. The commodity price may continue to fall based on the momentum of the negative news.

What is Copper?

Copper is a widely used industrial metal known for its conductivity and corrosion resistance. It is a key component in various industries, especially in electrification and infrastructure development.

Why is Copper going down?

COPPER commodity is down 5.9% on May 22, 2024 22:00

  • 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.

COPPER Price Chart

COPPER News

Copper is down by 5.01%

Copper decreased 5.01% to 4.8504 USD/Lbs

Copper Retreats from Record High

Copper futures were below $5 per pound, easing from the record-high $5.2 on May 20th as poor demand in the near term weighed against speculative bets that triggered a broad-based surge in base metals this month. Import demand in China, the world's top copper consumer, remained at extremely low levels despite tight ore supply and low treatment volumes in the country's huge refining industry. This lifted inventories to four-year highs and drove deliveries from bonded warehouses to a sharp discount to LME prices for the first time since data started in 2017, indicating low physical demand. Still, speculative bets for copper kept prices 30% higher year-to-date, based on its key role in electrification in grid-scale energy storage and data-center infrastructure, matching eventual traction in Chinese bidding after Bejing unveiled historical measures to prop up its economy. This coincides with large costs to add new supply, driving miners to M&A action instead of developing new projects.

Copper Retests Record High

Copper futures rose toward $5.15 per pound in May, retesting the record high and extending a recent rally as speculative demand magnified concerns of looming shortages. Beijing announced it would purchase unsold housing inventory to limit defaults for distressed developers, adding to infrastructure stimulus through new long-dated debt issuance. This magnified speculative bets for copper due to its key role in electrification in grid-scale energy storage and data-center infrastructure. Fresh mine supply is low, as high costs of committing to new projects drove giant miners to M&A activity instead of new projects, headlined by BHP’s second attempt to buy Anglo American. The speculative nature of copper bids lifted prices despite low demand in the near term. The ICSG expects the copper market to end at a surplus for 2024 and 2025, while low Chinese demand lifted national inventories to four-year highs, resulting in the first-ever discount to take deliveries from bonded warehouses.

Copper Rises to Record High

Copper futures touched a record high of $5.15 per pound before steadying above $5.1 on Monday as strong demand expectations and tight supply, intensified worries about potential shortages. The Chinese government announced it will purchase unsold housing inventory to combat oversupply and limit defaults for distressed developers. This comes on top of CNY 1 trillion in stimulus through long-dated bond issuance this year, largely aimed at infrastructure. This magnified bullish bets for copper consumption due to its key role in electrification, from grid-scale energy storage to data-center infrastructure. In turn, low copper availability hampered output forecasts for smelters in China, responsible for over half of global supply. Hopes of added mine supply are dim, as high costs of committing to new projects drove giant miners to M&A activity instead of new projects, recently headlined by BHP’s second attempt to buy Anglo American.

Copper Hits All-time High

Copper increased to an all-time high of 5.15 USD/Lbs. Over the past 4 weeks, Copper gained 14.66%, and in the last 12 months, it increased 39.28%.

Avalanche ($AVAX) Crypto Forecast: Down 7.9% Today

Solana ($SOL) Crypto Forecast: Down 8.9% Today

Polygon ($MATIC) Crypto Forecast: Down 6.5% Today

Litecoin ($LTC) Crypto Forecast: Down 5.1% Today

Chainlink ($LINK) Crypto Forecast: Down 5.3% Today

Shiba Inu ($SHIB) Crypto Forecast: Down 5.3% Today

Memecoin ($MEME) Crypto Forecast: Down 5.9% Today

Ethereum Name Service ($ENS) Crypto Forecast: Down 17.1% Today

The Graph ($GRT) Crypto Forecast: Down 6.9% Today

Pepe ($PEPE) Crypto Forecast: Down 9.3% Today

Copper Price History

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 5.0%

  • 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.

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.

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.

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.
i
Disclaimer
Morpher is not liable for the content of the AI investment insights. Like most GPT-powered tools, these summaries may contain AI hallucinations and inaccurate information. Morpher is not presenting you with any investment advice. All investments involve risk, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. These summaries do not constitute investment advice.