Copper trades on a number of different metal exchanges, including the London Metal Exchange (LME), the COMEX in New York and the Shanghai Metal Exchange (SHMETX), and copper prices may be found via these exchanges. Unlike precious metals prices, which are consistently denominated by the ounce across various exchanges, copper prices are denominated by the pound when traded on the COMEX and by the kilogram when traded on the LME.
Furthermore, spot copper prices represent the current price for the metal, while copper futures represent copper priced for delivery at a future date. For example, copper for delivery in three months would be priced differently than spot copper. As with any commodity, supply and demand dynamics are key drivers for the copper price. While copper inventories on metal exchanges are commonly looked to as an indicator of copper supply, there are many other factors to be considered.
Mine production, scrap copper supply and unknown stores of copper in China, the world’s top consumer of the metal, are all key considerations when looking at whether there is a surplus or deficit for copper. Much of the world’s copper supply comes from Chile, although other countries, such as China, Peru and the United States, also produce significant amounts of copper.
Changes in forecasted copper output from larger miners and countries can cause the copper price to rise or fall, depending on the extent production is cut or expanded.
In terms of demand, copper is widely used in construction and in electrical wiring, for which there is no commercial substitute for the metal. As mentioned above, China is the world’s largest consumer of copper, making up roughly 40 percent of global demand. For this reason, economic indicators from China can be a key factor in day to day movements of the copper price.
In particular, Purchasing Managers Index (PMI) data indicates whether the manufacturing sector in China is growing or contracting, and copper prices typically move upwards with healthy manufacturing data. However, healthy manufacturing data may also indicate that China’s government may not need to implement additional economic stimulus measures, causing copper prices to fall. Other policy changes from China can also affect prices, such as investments in additional infrastructure.
Beyond that, the performance of other larger economies, such as that of the United States, may also have an impact on prices. In fact, it’s worth noting that the copper price is commonly known as ‘Dr Copper,’ as the red metal is said to have a PhD in world economics given the close relationship of its performance to that of the global economy.
Amerigo Resources Ltd. (“Amerigo” or the “Company”) (TSX: ARG) announced today production results for the year 2017 and Q4-2017 from Minera Valle Central (“MVC”), the Company’s 100% owned operation located near Rancagua, Chile.
As quoted in the press release:
Rob Henderson, Amerigo’s President and CEO, stated “MVC performed strongly again in 2017.
By Pia Rivera
Deep-South Resources Inc. (TSXV:DSM) has disclosed today its independent NI 43-101 Resource estimation on the Haib Copper project in Namibia. Deep-South has also announced that Midas Engineering and Technical Services of Australia (“METS”) has been appointed to complete a Preliminary Economic Assessment (“PEA”), that should be available by the end
By Melissa Shaw
Royal Gold (NASDAQ:RGLD) (together with its subsidiaries, “Royal Gold” or the “Company”) today announced that its wholly owned subsidiary RGLD Gold AG sold approximately 62,000 gold equivalent ounces comprised of approximately 52,000 gold ounces, 470,000 silver ounces and 800 tonnes of copper related to its streaming agreements during its fiscal 2018
The Sierra Madres region in Northern Mexico was home to many historic artisanal mining camps where precious metals and copper were mined close to surface.
Asiamet Resources Ltd. (LSE:ARS) announced that it has been granted a production license that is key to advancing its Indonesia-based Beutong copper-gold project toward construction.
The latest US jobs data shows that 148,000 jobs were created in the US in December, well below the amount added in November.
By Melissa Shaw
Australia-based SolGold has released a maiden resource for the Alpala deposit at its Cascabel copper-gold porphyry project in Ecuador.
Gold was on the rise this week despite support for equities and the dollar. Silver and copper were also up, while oil hit its highest level since mid-2015.
What’s the copper outlook for 2018? Analysts are cautiously optimistic about the red metal in 2018. Read on to learn what they had to say.
Western Copper and Gold CEO Paul West-Sells discusses the Yukon-based Casino project, the company’s wholly owned, billion-tonne copper-gold project.
Global Energy Metals CEO Mitchell Smith discusses the state of the cobalt market and what his company has done to stand out among its peers.
A look back at the main copper trends of 2017, from supply and demand dynamics to price performance over each quarter of the year.